Purchase of wineries in Spain
Spain has about 100 wineries offered for sale for those who are dreaming of their own vineyard in Europe.
Ready-made business and real estate in Spain are objects of focused attention of foreign investors as a result of a significant price fall. We have already talked about a widespread tendency of purchasing real estate in Catalonia for future lease. Today we are starting a series of articles on purchasing a ready-made business in Spain.
Spain is the #1 world producer of wine. Spanish wines are more sharp and temperamental; they have a more strongly pronounced character. It can be especially related to red wines which constitute the majority of exported wines. Excellent white, rosé wines, cava and sherry are produced here. Wines differ depending on sole, climate and grape.
Spain has the biggest total space of vineyards compared to other countries. Their best part is located in the mountains, on hills and highlands, at a height of a couple of hundreds and even thousands of metres above sea level. Moreover, Spain, contrary to a popular opinion, is a country of sharp climatic contrasts. Each province cultivates specific grape varieties and produces corresponding wine types, all different with unique tastes and flavours.
There are a bit less than 5 thousand wineries in Spain. About one hundred wineries were listed for sale at the beginning of 2013. Discounts for some of them go up to 50%. Buildings with many hundreds of years of history, mineral springs and luxury hotels constitute a part of their infrastructure. The fact is that many wineries were built in the period of prosperity of real estate in Spain in 2007-2008. Construction presupposed big investments which were being paid off in a complicated way after a long period of time. But due to insufficient experience, manufacturers faced funding problems. Winery owners could not rearrange the export of their production and found themselves on the verge of bankruptcy due to a sales slowdown inside the country. Two consequent bad harvests made things worse which led to the sale of wineries.
Mainly Chinese and Russian investors are interested in buying ready-made companies in this sector.
The price of one vineyard hectare in Spain is approximately two times lower than in France or in Italy. The best part of winery lands, approximately 500,000 hectares, is located to the south from Madrid. The most internationally famous Spanish wine producer region, Rioja, is situated in the north, the overall vineyard area here is not big, just 42 thousand hectares. The majority of properties here occupy from 0.1 to 2 hectares of land. Rioja became the first province with the D.O.C. status (Denominación de Origen Califacada). The second wine-producing region which has got the D.O.C. status is Piorat in Catalonia.
What is necessary to do when purchasing a ready-made winery business:
- evaluate sole and vine, equipment, production and technical facilities, living and manufacturing spaces;
- carry out legal review;
- carry out analysis of existing trade channels;
- search for a qualified wine specialist.
Moreover, it is necessary to count the expenses for vineyard treatment and summer watering. It is easier and cheaper to produce young wine. Wine aged in pipes demands more time and expenses, however the benefit will be higher provided that marketing is done correctly.
Now Spain is trying to attract foreign investments and stimulate real estate sale and business setting up in order to create new work places. A new law of entrepreneurs which is about to come into effect in the next few months will offer a number of incentives and privileges to foreign investors. In particular, Spanish government will offer residence permits for real estate investments in Spain for a price amounting up to 500,000 euros. It could become another reason to buy real estate for those willing to settle in Europe, start a business and give European education to their children since a residence permit will not only be given to the purchaser, but to his or her family members as well.
