Winery for Sale in General Alvear, Mendoza, Argentina

Bargain Winery!!!!

This the real deal. For anyone that is looking for an amazing and life changing project, this is it! At the current price I am taking a very large loss but I have to sell because I moved back to Miami, FL and need the money for my business here. There are no loans on the property and it has a clear title.

The winery has a 1.113 million liter capacity and in great condition. This is a great deal for anyone that is able to put in the effort. The property has not been in operation for several years because the previous wine label went out of business during a difficult economy and I did operate it as planned because I had to move back to the United States for personal and financial reasons. The property needs to be renovated to be operational and needs equipment; however, the property is in good shape and the low cost of acquisition and renovation make this an excellent opportunity for someone that is not just a dreamer but also takes action.

There is no vineyard on the property. The grapes would be purchased from the surrounding vineyards. It is only 3+ acres so even if you planted grape vines it would not be a meaningful amount to sustain a decent wine production. There are outstanding grapes to choose from in this region, such as Malbec, Cabernet, Merlot, Syrah, Bonarda, and some white varieties as well although this winery is best suited for red wines.

The expensive parts of the winery exist on the property such as the tanks, the scale, crusher, and press but a lot of other equipment would have to be purchased such as pumps, etc.

The total cost of getting the winery up and running would depend entirely on the scale of operation. The main things to consider are renovation, equipment purchase, grape purchase, and management. The minimum extra cash required for this winery would probably be between $60k- $100k

There are many different options to pursue as well. One that is much simpler is to renovate the tanks and rent out to other wineries. Also the apartment could be renovated to a bed and breakfast for wine tourists and travelers going to Las Lenas. You could probably do this for about $50-80k and it would entail less oversight and operating costs. One company estimates that this would generate about a 35% annual return on investment assuming an all cash investment.

The property is affectionately known as the Tower Bodega because of its unique tall water tower that resembles a castle watchtower which can be seen from the main road at a distance. The winery was founded in 1914 by an English immigrant, and was operated continuously from that year until 1996. It has been closed for several years, but has been maintained in generally good condition. It is located on National Route 188, a major regional highway, approximately two kilometers from the center of the city of General Alvear in southern Mendoza province - an area well known for the production of fine red wines and champagne. The winery itself is particularly suitable for producing red wine.

Being located on the important route from Buenos Aires to Mendoza city and Chile (which is set for future expansion), It has a great marketing advantage. The property has a approximately 3+ acres of land with approximately 65+ meters of frontage on the main route. It shows well and has strong potential for wine tours once renovated. It has 16 mostly medium sized tanks allowing for greater control of winemaking. In addition, the number of tanks allow for a more gradual reactivation of the winery should an owner want to take it slow the first year and only epoxy a fraction of the wine tanks.

The winery includes an attached 3-bedroom, 1-bath apartment for a resident manager or caretaker, a 30,000 kilogram scale and scale house, storage areas, an office, warehouse, fenced and walled areas, covered parking, and a small orchard of approximately 100 apricot trees. There is a cement wall enclosure surrounding the main part of the property which adds to privacy and helps delineate the property boundaries. The main part of the building also has a large open area which can be used for various equipment and storage.

I can recommend management that can help you to get up and running. I also have an outstanding bilingual (English/Spanish) personal assistant that can work for the new owner full time if desired.

A recent article on Bloomberg (August 5th, 2010) entitled, “Malbec Drinkers in Brazil Use Real Rally to Buy Argentine Cases” comments how the wine industry in Argentina is getting a big boost because of increasing demand in the surrounding region.

This property has tremendous potential for the creative and opportunistic investor or passionate winemaker. It would also be a great starter winery for someone looking to get into the business. Argentina is positioned for major expansion due to growth in the region and potential agreement with creditor nations which will attract greater investment in the area and allow it to undertake its ambitious infrastructure projects (which will be a huge windfall to a city such as General Alvear)