Rural Funds Group (RFF) vineyard assets are leased to Treasury Wine Estates Ltd
Key details of the leases and lessee are outlined below:
|Lessee||Payment frequency||Indexation mechanism||Rent review||Capital commitments|
|Treasury Wine Estates Ltd (ASX: TWE)||Quarterly in advance||2.5% p.a. plus rent review||Capital value reassessed at fifth anniversary, based on independent valuation. Cannot be less than 2014 rent indexed for 5 years||
Treasury Wine Estates Ltd
Treasury Wine Estates is an ASX listed company (TWE) and as at 30 June 2016 had a market capitalisation of A$6.8b. TWE’s heritage dates back to the establishment of the Lindeman’s vineyard in 1843.
TWE is the world’s largest pure-play listed wine company with over 70 brands, including Penfolds, Seppelt Wines and Wolf Blass. TWE has access to 14,000 hectares of vineyards, sales of 30 million cases of wine annually distributed to more than 70 countries around the world, revenues of about AU$2.2 billion and employs more than 3,500 winemakers, viticulturists, sales, distribution and support staff.