Key details of the leases and lessees are outlined below:

Lessee Payment frequency Indexation mechanism Rent review Capital commitments
Treasury Wine Estates Ltd (ASX: TWE) Quarterly in  arrears 2.5% p.a. plus rent review Capital value reassessed at fifth anniversary, based on independent valuation.
  • R&M on account of lessee
  • Development and replacement capital items on account of lessor – subject to additional lease income and rent review

Treasury Wine Estates Ltd

Treasury Wine Estates is an ASX listed company (TWE) and as of December 2017 had a market capitalisation of A$12.1b. 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.