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Presentation made by Damien MOUNET (holding partner) and Audrey DUCHAND ( International Investment) about the investment in Bordeaux vineyards. This presentation was part of a breakfast conference organized by the Chamber of Commerce and Industry of Bordeaux and the French Chamber of commerce and Industry of Hong Kong on May 29th, 2014 as a side event of Vinexpo Asia pacific.
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WINE REAL ESTATE TRANSACTIONS
in Bordeaux
« Invest in Bordeaux Châteaux» Banker’s Club, HONG KONG, Thurs 29 May 2014– 10H00
VITI TRANSACTIONS TEAM
Former wine maker and manager of a Bordeaux vineyard (Sixth generation of a wine-makers family). Damien wine culture background combined with real
estate skills and experience are real asset to successfully achieve your project.
Member of the St Emilion jurade
+33(0)6 50 39 69 56
+33(0) 984 207 565
Customer-oriented, Audrey has an international
background in order to ensure high level of service in French, English, Spanish and Chinese. Audrey is in charge of international investments in collaboration
with Damien MOUNET. She represents the company abroad.
DAMIEN MOUNETManaging partner
AUDREY DUCHANDInternational Investments
Customer relationship
VITI TRANSACTIONS EXPERIENCE
More than 50 transactions carried out by our team with « Square Viti », VITI TRANSACTIONS previous brand name.
A few examples: CHÂTEAU BRANDA – CHÂTEAU LA COMMANDERIE – CHÂTEAU GRAND BRANET – CHÂTEAU TILLEDE – CHÂTEAU LAURETTE – CHÂTEAU MEILLAC – CHÂTEAU MILLAU MONTLABERT – CHÂTEAU HAUT PEYROUS – CHÂTEAU DU CAYRES – CHÂTEAU YON LAVALLADE…
AOC: ST EMILION – GRAVES – POMEROL – LALANDE DE POMEROL– BORDEAUX
COTES DE BORDEAUX – ST CROIX DU MONT – VAYRES - SAINT ESTEPHE - …
WINE REAL ESTATE TRANSACTIONS
S U M M A RY:
WINE ESTATE VALUE
Organisation of the different AOC, Valuation of propriety
PROJECT ANALYSIS
TRANSACTION PROCESS
AOC ORGANISATION WITHIN AN AREA
REGIONS HIGH VALUE AOC
LOWER VALUE AOC
LEFT BANKMEDOC-SAUTERNES-GRAVES
SAINT JULIENPAUILLACMARGAUXPESSAC LEOGNAN
MOULISLISTRACMEDOC / HAUT MEDOCSAUTERNESGRAVESSTE CROIX DU MONT
RIGHT BANKST EMILION – POMEROL -FRONSAC
POMEROLSAINT EMILION GD CRU
LALANDE DE POMEROLST EMILION SATELLITESFRONSAC
BORDEAUX – COTES DE BORDEAUX
COTES DE BORDEAUX Castillon, Blaye, Francs…BORDEAUXTableau à titre indicatif ne validant pas les caractères de tous les produits
existant sur l’AOC concerné.
AVERAGE VALUES OF VINES €/HA
A FEW EXAMPLES: planted vines, in good conditions, medium age
SAINT JULIEN 1.000.000 PAUILLAC 2.000.000 POMEROL 900.000 PESSAC LEOGNAN 400.000 SAINT EMILION 200.000 MEDOC 40.000 BLAYE COTES DE BORDEAUX 18.000 BORDEAUX ROUGE 15.000
Source/ SAFER 2013
THE VALUE OF A PROPRIETY
BASIC VALUEAverage value of the AOC (based on AOC
sales statistics and comparison with equal properties sold in the same AOC)
+AUDIT VALUE
Audit of the propriety (by experts)
AUDIT OVERVIEW
1- TECHNICAL AUDIT:
Vines description: vines plots classifiction (CVI), density, exposure, condition…)
House/Mansion/castle ( architecture, condition, dependencies)
Description of buildings and their compliance (effluents…) Description of wine-growing and wine-making facilities
(compliance, condition, technology used, equipments). Stock assessment (quantity, quality…) sworn broker Environmental inspection of vat-houses and store-houses
PCP/TCA (asbestos; lead, termites). Wine Brands( filing in INPI, notoriety, distribution)
AUDIT OVERVIEW
2 – ACCOUNTANCY AND FINANCIAL MANAGEMENT
Analysis of Income Statement(-/+), data consistency
Cost of Inventories, production costs Elaboration of a sound business plan Investments planning
AUDIT OVERVIEW
3 – LEGAL, FISCAL AND SOCIAL ANALYSIS
Legal organisation Deed of Property Existing contracts (market exclusitivity…) Tax systems Contracts of employment, procedures
PRICES EXAMPLE
Case of 3 typical family properties in ST EMILION GRAND CRU AOC
Small castle +10ha of vineyard in good condition + vat-house
1st property: no outstanding terroir, no particulartity
2.150 000€ (transaction fees included)* 2nd property: great « terroir »
4.800 000€ (transaction fees included)* 3rd property: neighbour of prestigious property°:
From12M€ to …(transaction fees included)*° classified a St Emilion Grand Crus, many quality points
*guideline
YOUR PROJECT
The choice of investment depends on your budget but also on the type of investment.
Different projects include different needs and different costs.
The ideal property according to a particular project might be on every AOC.
ANALYSIS OF CLIENTS NEEDS
PROJECT EXAMPLES:
WINE TOURISM:HOUSE + DEPENDENCIES + A SMALL VINE AREABueatiful propriety of charactere composed of 3 houses allowing wine tourism activites.
The 3 houses facilities and their situation in the heart of vineyards are the main assets of this propriety. However, the wine produced in the 20ha of vines remains a quality wine and enjoys a good image in Bordeaux AOC.
REF:10014 PRICE (agency fees included) 2.730.000€
Main house House for tourism location
Vineyards
PROJECT EXAMPLES:
PRODUCTION: HOUSE + GREAT VAT-HOUSE + BIG VOLUME OF PRODUCTIONBeautiful property with a Vat-house and Storage cellar. A 42 hectares vinyards on different quality brands and AOC. About 230 000 bottles/year.
Possibility of division into 2 products on 2 areas: AOC FRONSAC and BORDEAUX SUPERIEUR
REF: 10008 – 10009 PRICE: 1.890.000€ + 2.190.000€
Mansion
Thermoregulated StainlessVat-House
Vineyard
PROJECT EXAMPLES:
CHATEAU:The dream of living in a beautiful castle overlooking a vineyard is accessible with this estate.
This castle has been a privileged place for COTES DE BORDEAUX AOC vines for more 200 years on more than 30ha.
Huge restructuring of the vineyard and buildings have been undertaken (vat-house, barrel storehouse…)
REF: 10006 PRICE FAI: 3.360.000€
PROCESS OF A TRANSACTION
IDENTIFICATION of interlocutors and key players
PRESENTATION of the propriety CONNEXIONS ACCOMPANYING on the propriety ASSISTANCE for legal procedures MAINTENANCE of dialogue between
stakeholders ANALYSIS within time: SUCCES … ou ADVICE after the transaction…
DIFFERENT DOCUMENTS/STEPS
SALE MANDATE: Description of the requirements validated by the the two parties: price, period of validity (3 months automatically renewable for 12months). Fees paid by the buyer
NEGOCIATION MANDATE: Certification of the buyer’s interest in a product. Fees paid by the buyer.
SALE AGREEMENT: Definition of terms and conditions binding the two parties.
UNILATERAL COMMITMENT TO SELL/BUY NOTARISED AGREEMENT: real estate sale= final
sale DEED OF TRANSFER OF SHARES: Final Sale
LEGAL PROCEDURES
AOC REGISTRATION
SAFER REGISTRATION- The investor relies on the safer to assess the validity of
your investment project
SAFER fees - The investor chooses not to rely on SAFER
equal fees will be charged as notary taxes that wouldn’t have been charged with the SAFER intervention.
TRACFIN
Professionals have the obligation to check investors’ identity and reliability.
A SUCCESSFUL OPERATION
WORK WITH WINE REAL ESTATE PROFESSIONALS
CAREFULLY CARRY OUT AUDITS AND RESEARCHES
MAINTAIN RESPECTUOUS EXCHANGES MAKE CONCESSIONS DEEP ANALYSIS OF THE PROJECTS NEEDS BE REALISTIC REGARDING THE PROJECT
Thank You for your Attention
124 QUAI DES CHARTRONS 33300 BORDEAUX
37 PLACE ABEL SURCHAMP 33500 LIBOURNE
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SARL VITI TRANSACTIONS ASSOCIES (Filiale de la Caisse Régionale de Crédit Agricole d’Aquitaine) dont le siège social est
124 Quai des Chartrons 33300 BORDEAUX, société à responsabilité limitée au capital de 50 000€, inscrit au Registre du Commerce et des Sociétés de Bordeaux sous le numéro 798 091 096, titulaire de
la carte professionnelle n° 33063-3420 portant mention «Transactions sur immeubles et fonds de commerce et gestion
immobilière» délivrée par la Préfecture de la Gironde et garantie par la CAMCA 75008 PARIS
