Vineyard leasing scheme offers returns on sales

A new vineyard leasing scheme said to be “the first of its kind” has been launched in the UK using vineyards from some of South Africa’s leading estates.

Launched by Barringtons International, which has been specialising in leasing South African vineyards since 2007, the short-term investment scheme is offering a “potential return of between 17% and 36% each year.”

While vineyard leasing schemes are already popular in the UK, Barringtons states that its point of difference lies in the fact that returns are based entirely on sales produced from the vines that are leased by its customers.

Lance Pye, CEO of Barringtons International, said: “It is a unique model that will give people who have a passion for wine the chance to profit from their interest. The scheme has proved extremely popular in South Africa and our current investors are receiving average annual profits of up to 36%, which we aim to replicate in the UK.”

Annual profit from the scheme can be taken as cash, or up to 250 bottles, or a combination of the two. Leases will be available from one year, at a cost of £1,500 each year for 200 vines (one third of an acre).

Barringtons states that typical yearly return would be 17% for a one year lease, 24% for two years and 36% for three years. For wine drinkers who would prefer to receive their profit as wine, bottles can be individually branded for customers.

Pye added: “The South African wine industry is going from strength to strength and the wines being produced here are on par with some of the best in the world.

“We’re offering UK wine enthusiasts the chance to become part of this booming industry, a market place which until now has been completely untapped.”

Jane Parkinson, 20.12.2010