Purchasing a vineyard: a profitable investment?
25 June 2019
An article written by Alexandre Streel, Maxime Mareschal and Virginie Meunier (BDO Corporate Finance) about the profitability and valuation of vineyards has been published in the March-19 edition of the monthly magazine “Bulletin de l’OECCBB” from Anthemis.
As showed by the growth of the Belgian wine production during the last 10 years, Belgian investors are getting more and more interested in vineyards, not only as a source of personal satisfaction and peer recognition, but also as a financial investment target.
But is the vineyard a sound investment? What are the key financial characteristics of vineyards and wineries? How should we value such assets? And how can we challenge market prices with respect to the risk-return relationship applied to vineyards? These are some questions addressed by the article, illustrated with 2 case studies of French vineyards.
For more information on vineyards’ financial analysis and valuation exercises, please contact Alexandre Streel.