Now you can invest in a part of a luxury winery in South Africa – how the model works

Winemakers, the Newton Johnson family, have announced the co-founding of Hemelzicht Vineyards in the upper valley of Hemel-en-Aarde, in the Western Cape, which they aim to turn into an investment vehicle.

In what the family calls a first for South Africa, the deal will allow the public to own shares in a luxury wine company with a unique unique investment model.

Hemelzicht Vineyards’ investment model allows for property starting at R 1 million and the ability to create wines under the guidance of an experienced and professional management and winemaking team, the group said.

He said the investment offers potential capital growth, no service costs, as well as cash. Dividends are paid to owners in premium wines, luxury accommodation amidst the estate’s vineyards, and annual cash dividends.

“Hemelzicht Vineyards presents a rare opportunity to acquire a wine business in the heart of Hemel-en-Aarde, among the best producers of pinot noir such as Newton Johnson, Hamilton Russell, Storm and Crystallum”, said Roland, Managing Director of Hemelzicht Vineyards. Penis.

“No other category of wine sells as quickly as Pinot Noir from Hemel-en-Aarde. Supply is low in the world and this farm is in a prime position to produce world class wine. With 50% of the shares already spoken, we are also assured of the demand for this type of unit investment.

The 60 hectare estate of Hemelzicht Vineyards, run by the Nadia and Gordon Newton Johnson winemaking team, is expected to produce 110,000 bottles per year.

The first terroir will be cultivated organically and sustainably to produce a majority of Pinot Noir and Chardonnay, the group said.

Below is a brief question-and-answer session with Peens that explains in more detail how the model works.


What are the main advantages for the investor?

Homeowners benefit from a hassle-free investment with high capital growth potential, with no service charges (no monthly / annual drawdowns or fees).

Second, the field will be sales oriented, focusing on sales targets to increase business growth. Along with capital growth, dividends are distributed each year in fine wines and luxury accommodation. Cash dividends will be taken into account in the seventh year, when the estate reaches full production.

What exactly will investors have if they invest in Hemelzicht Vineyards?

The shareholders will hold equity in the company that owns the winery, brand, villas and winery.

Along with South Africans, UK investors have shown the greatest interest to date. The United States, Europe, the Middle East and the Far East have also expressed interest.

Generalized shareholding supports the model, and we envision around thirty shareholders in ten markets. Of course, we will assist international members in the export of their wine dividends.

Are there similar investment models on the world stage? How do they compare?

Similar international options allow you to invest in projects within a wine business such as Winefunding.com and Smergers.com.

The Hemelzicht Vineyards model allows investors to become owners and benefit from the same rights as other shareholders.

Vineyard & Terroir Fund is a managed investment of wineries around the world, but does not offer any of the lifestyle benefits. The successful Napa Valley Reserve is a VIP wine club that produces wine exclusively for its members, but excludes equity ownership.

How will dividends be distributed to shareholders?

20% of wine production is declared as dividends to shareholders, which will represent more than 220 bottles per share by 2026.

The three luxury villas between the vines and the fynbos will also offer owners 15 days of accommodation per action and per year.


Read: The richest people in South Africa got richer in the year ravaged by Covid-19


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Jean H. Vannatta

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