PSP Investments to buy Aussie vineyards from Casella Family Brands

PSP Investments is making the investment through Southern Premium Vineyards, the Canadian pension fund's Australian vineyards platform.

  • The partnership covers vineyards totaling 7,215 hectares across 35 properties in South Australia and New South Wales, with associated water entitlements, plant and equipment
  • PSP’s Southern Premium Vineyards currently owns 460 hectares of vineyards in the Coonawarra and Barossa Valley regions of South Australia
  • Casella is Australia’s largest family-owned winery and Australia’s largest exporter by volume

Public Sector Pension Investment Board has agreed to acquire several vineyards from Casella Family Brands, an Australian wine company. No financial terms were disclosed.

PSP Investments is making the investment through Southern Premium Vineyards, the Canadian pension fund’s Australian vineyards platform.

The partnership covers vineyards totaling 7,215 hectares across 35 properties in South Australia and New South Wales, with associated water entitlements, plant and equipment.

Southern Premium Vineyards currently owns 460 hectares of vineyards in the Coonawarra and Barossa Valley regions of South Australia.

On the deal, Marc Drouin, senior managing director, real assets and global head of natural resources investments, PSP Investments, said in a statement, “Our commitment to sustainable farming combined with our long-term investment horizon allows PSP Investments to lever Australia’s unique global competitive position for its quality wine grapes. Casella is a best-in-class group with an impressive portfolio of vineyards in some of the country’s most highly regarded wine regions. This acquisition is a cornerstone investment for both SPV and PSP Investments’ global wine portfolio.”

Casella is Australia’s largest family-owned winery and Australia’s largest exporter by volume. It has plans to grow the business nationally and internationally.

Based in Montreal, PSP Investments invests on behalf of Canadian federal government employee plans. It had C$230.5 billion of net assets under management as of March 31, 2022.