Russian and Chinese citizens buy wineries incognito in Spain
Total confidentiality is the main demand of winery purchase participants in Spain, El Mundo newspaper reports. The buyers are mainly foreign investors; the majority of them are Russian and Chinese, a small percentage is coming from Colombia, Mexico and Venezuela. The sellers are Spanish wine-makers who cannot cope with bank credit payments.
Foreign investors are attracted by an exceptional opportunity to take advantage of the “wine boom” consequences. It was a time when, in the 90s, following the economic recovery of the country and real estate market growth, it was fashionable and prestigious to be a wine-maker. Such a fast growing popularity of this type of business lead to multimillion investments into new projects and expansion of the already existing businesses. The mistake of the majority of the new wine-makers was an almost total disregard of marketing principles; they thought that good wine would sell itself with no need to make extra effort. One more typical error of Spaniards was the way they carried out the whole production cycle, from growing grapes to selling the fabricated product. For example, in Australia the majority of wineries do not take care of bottle filling, storage and distribution of wine, assigning such tasks to specialized companies. As a result, when the economical crisis broke out, many winery owners turned out to be incapable of paying debts to the banks and were obliged to list their possessions for sale.
The wineries for sale are situated all over Spain. The most demanded wineries are located in Ribera-del-Duero and Rioja, the most internationally famous regions. The majority of wineries carry on their business actively; some of them even get a high profit. Chinese investors buy wineries for production and further import of wine to their country. Winery purchase for wealthy Russian citizens is more of an expensive whim. The middle sum of purchase is between 2 and 4 million euros.
In 2013, Spain headed the list of the countries with the highest volume of produced wine. Export volume is on the rise too, during the first six months of the current year Spain sold 1,057 billion litres of wine to foreign countries. Such situation is very pleasant for investments in Spain’s winery sector. After all, there is a right to ask for a residence permit for real estate and business project investments in Spain.
Earlier we wrote about winery purchase as an investment in a ready-made business in Spain in our article “Buy winery in Spain”.
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