Château de La Rivière acquired by Luxembourg-based investment fund

One of Fronsac’s most prominent estates has been acquired by a Luxembourg-based investment fund in its first strategic move into the wine sector, after being Chinese-owned for over a decade. 

GFI investment fund acquired Château de La Rivière from the Chinese-owned Bolian group, which has owned it since 2013, for an undisclosed sum.

The private equity fund is managed by the international investment management firm, the Signet Group, which has offices in London, Zurich, Cyprus (Limassol), and Abu Dhabi. Although the team invests widely across the food, beverage, and agriculture sectors, notably in Europe, this marks the fund’s first venture into the wine sector.

The 100ha estate has around 65 ha of vines, the majority red varieties, primarily Merlot (accounting for 84% of its red varieties), with Cabernet Franc (8%), Cabernet Sauvignon (6%), and Malbec, while 2.15 hectares are planted with Sauvignon Blanc and  Sauvignon Gris. It also has 8 hectares (25 km) of galleried wine cellars that were dug in the 19th century. Around 40% of the vines are aged 40 years or older.

Following the acquisition, GFI has appointed Sébastien Long, formerly head of supply strategy and business development EMEA at Treasury Wine Estates since 2013, as president.

Long said he was thrilled to be taking on this new challenge and proud to “carry forward the heritage of this extraordinary estate”.

“Despite the current difficult environment, we are confident in the future of the wine industry and Bordeaux wine,” he said in a statement.

It seems likely that under the new ownership, the fund will invest in both the vineyard and winery, as well as looking to further boost its sales.

The estate’s director, Xavier Buffo, who has been in the role since 1997 and worked with the previous owners Jean Leprince and Xavier Péneau, the Gregroire family, and Bolian’s Ms. Lau, said he was very pleased to welcome the new investors, adding that they would “bring fresh momentum and the resources to build on what we’ve started, with a clear vision for modernizing our production and accelerating sales.”

As reported by db earlier this year, Fronsac has started to garner more attention in recent years, having long “watched from the wings” as St-Émilion and Pomerol take centre stage in the trio of Bordeaux right bank fine wine regions. Before the sale, around 50% of Fronsac’s vineyards were owned by investors, including French investors, with Chinese investors owning two other properties, Châteaux Richelieu and the 100ha estates, Plain Point.

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