Presentation made by Damien MOUNET (holding partner) and Audrey DUCHAND ( International Investment) about the investment in Bordeaux vineyards. This presentation was part of a breakfast conference organized by the Chamber of Commerce and Industry of Bordeaux and the French Chamber of commerce and Industry of Hong Kong on May 29th, 2014 as a side event of Vinexpo Asia pacific.

1. « Invest in Bordeaux Châteaux»
Banker’s Club, HONG KONG, Thurs 29
May 2014– 10H00
WINE REAL ESTATE
TRANSACTIONS
in Bordeaux

2. VITI TRANSACTIONS TEAM
damien.mounet@vititransactions.com
+33(0)6 50 39 69 56
Former wine maker and manager of a Bordeaux
vineyard (Sixth generation of a wine-makers family).
Damien wine culture background combined with real
estate skills and experience are real asset to
successfully achieve your project.
Member of the St Emilion jurade
audrey.duchand@vititransactions.c
om
+33(0) 984 207 565
Customer-oriented, Audrey has an international
background in order to ensure high level of service in
French, English, Spanish and Chinese. Audrey is in
charge of international investments in collaboration
with Damien MOUNET. She represents the company
abroad.
DAMIEN MOUNET
Managing partner
AUDREY DUCHAND
International
Investments
Customer relationship

3. VITI TRANSACTIONS EXPERIENCE
More than 50 transactions carried out by our
team with « Square Viti », VITI TRANSACTIONS
previous brand name.
A few examples:
CHÂTEAU BRANDA – CHÂTEAU LA COMMANDERIE – CHÂTEAU
GRAND BRANET – CHÂTEAU TILLEDE – CHÂTEAU LAURETTE –
CHÂTEAU MEILLAC – CHÂTEAU MILLAU MONTLABERT –
CHÂTEAU HAUT PEYROUS – CHÂTEAU DU CAYRES – CHÂTEAU
YON LAVALLADE…
AOC: ST EMILION – GRAVES – POMEROL – LALANDE DE POMEROL– BORDEAUX
COTES DE BORDEAUX – ST CROIX DU MONT – VAYRES - SAINT ESTEPHE - …

4. WINE REAL ESTATE
TRANSACTIONS
S UMMA R Y:
 WINE ESTATE VALUE
Organisation of the different AOC, Valuation of propriety
 PROJECT ANALYSIS
 TRANSACTION PROCESS

6. AOC ORGANISATION WITHIN AN AREA
REGIONS HIGH VALUE
AOC
LOWER VALUE
AOC
LEFT BANK
MEDOC-SAUTERNES-GRAVES
SAINT JULIEN
PAUILLAC
MARGAUX
PESSAC LEOGNAN
MOULIS
LISTRAC
MEDOC / HAUT
MEDOC
SAUTERNES
GRAVES
STE CROIX DU MONT
RIGHT BANK
ST EMILION –
POMEROL -FRONSAC
POMEROL
SAINT EMILION GD
CRU
LALANDE DE
POMEROL
ST EMILION
SATELLITES
FRONSAC
BORDEAUX – COTES
DE BORDEAUX
COTES DE
BORDEAUX Castillon,
Blaye,
Tableau à titre indicatif ne validant pas les caractères de tous les prFordaunitsc se…xisBtaOntR sDurE l’AAOUCX
concerné.

7. AVERAGE VALUES OF VINES €/HA
 A FEW EXAMPLES: planted vines, in good conditions, medium age
 SAINT JULIEN 1.000.000
 PAUILLAC 2.000.000
 POMEROL 900.000
 PESSAC LEOGNAN 400.000
 SAINT EMILION 200.000
 MEDOC 40.000
 BLAYE COTES DE BORDEAUX 18.000
 BORDEAUX ROUGE 15.000
Source/ SAFER
2013

8. THE VALUE OF A PROPRIETY
BASIC VALUE
Average value of the AOC (based on AOC sales
statistics and comparison with
equal properties sold in the same AOC)
+
AUDIT VALUE
Audit of the propriety (by experts)

9. AUDIT OVERVIEW
1- TECHNICAL AUDIT:
 Vines description: vines plots classifiction (CVI), density,
exposure, condition…)
 House/Mansion/castle ( architecture, condition,
dependencies)
 Description of buildings and their compliance (effluents…)
 Description of wine-growing and wine-making facilities
(compliance, condition, technology used, equipments).
 Stock assessment (quantity, quality…) sworn broker
 Environmental inspection of vat-houses and store-houses
PCP/TCA (asbestos; lead, termites).
 Wine Brands( filing in INPI, notoriety, distribution)

10. AUDIT OVERVIEW
2 – ACCOUNTANCY AND FINANCIAL MANAGEMENT
 Analysis of Income Statement(-/+), data consistency
 Cost of Inventories, production costs
 Elaboration of a sound business plan
 Investments planning

11. AUDIT OVERVIEW
3 – LEGAL, FISCAL AND SOCIAL ANALYSIS
 Legal organisation
 Deed of Property
 Existing contracts (market exclusitivity…)
 Tax systems
 Contracts of employment, procedures

12. PRICES EXAMPLE
Case of 3 typical family properties in ST EMILION GRAND
CRU AOC
Small castle +10ha of vineyard in good condition + vat-house
 1st property: no outstanding terroir, no particulartity
2.150 000€ (transaction fees included)*
 2nd property: great « terroir »
4.800 000€ (transaction fees included)*
 3rd property: neighbour of prestigious property°:
From12M€ to …(transaction fees included)*
° classified a St Emilion Grand Crus, many quality points
*guideline

13. YOUR PROJECT
 The choice of investment depends on your
budget but also on the type of investment.
 Different projects include different needs and
different costs.
 The ideal property according to a particular
project might be on every AOC.
 ANALYSIS OF CLIENTS NEEDS

14. PROJECT EXAMPLES:
 WINE TOURISM:
HOUSE + DEPENDENCIES + A SMALL VINE
AREA
Bueatiful propriety of charactere composed of 3 houses allowing wine tourism activites.
The 3 houses facilities and their situation in the heart of vineyards are the main assets of this propriety. However, the wine
produced in the 20ha of vines remains a quality wine and enjoys a good image in Bordeaux AOC.
REF:10014 PRICE (agency fees included)
2.730.000€
Main house House for tourism location
Vineyards

15. PROJECT EXAMPLES:
 PRODUCTION:
HOUSE + GREAT VAT-HOUSE + BIG VOLUME OF PRODUCTION
Beautiful property with a Vat-house and Storage cellar. A 42 hectares vinyards on different quality brands and AOC. About
230 000 bottles/year.
Possibility of division into 2 products on 2 areas: AOC FRONSAC and BORDEAUX SUPERIEUR
REF: 10008 – 10009 PRICE: 1.890.000€ +
2.190.000€
Mansio
n
Thermoregulated StainlessVat-
House
Vineyard

16. PROJECT EXAMPLES:
 CHATEAU:
The dream of living in a beautiful castle overlooking a vineyard is accessible with this estate.
This castle has been a privileged place for COTES DE BORDEAUX AOC vines for more 200 years on more than
30ha.
Huge restructuring of the vineyard and buildings have been undertaken (vat-house, barrel storehouse…)
REF: 10006 PRICE FAI:
3.360.000€

17. PROCESS OF A TRANSACTION
 IDENTIFICATION of interlocutors and key
players
 PRESENTATION of the propriety
 CONNEXIONS
 ACCOMPANYING on the propriety
 ASSISTANCE for legal procedures
 MAINTENANCE of dialogue between
stakeholders
 ANALYSIS within time: SUCCES … ou
 ADVICE after the transaction…

18. DIFFERENT DOCUMENTS/STEPS
 SALE MANDATE: Description of the requirements
validated by the the two parties: price, period of validity
(3 months automatically renewable for 12months). Fees
paid by the buyer
 NEGOCIATION MANDATE: Certification of the buyer’s
interest in a product. Fees paid by the buyer.
 SALE AGREEMENT: Definition of terms and conditions
binding the two parties.
 UNILATERAL COMMITMENT TO SELL/BUY
 NOTARISED AGREEMENT: real estate sale= final sale
 DEED OF TRANSFER OF SHARES: Final Sale

19. LEGAL PROCEDURES
 AOC REGISTRATION
 SAFER REGISTRATION
- The investor relies on the safer to assess the validity of your
investment project
 SAFER fees
- The investor chooses not to rely on SAFER
 equal fees will be charged as notary taxes that wouldn’t have
been charged with the SAFER intervention.
 TRACFIN
Professionals have the obligation to check investors’ identity and
reliability.

20. A SUCCESSFUL OPERATION
 WORK WITH WINE REAL ESTATE
PROFESSIONALS
 CAREFULLY CARRY OUT AUDITS AND
RESEARCHES
 MAINTAIN RESPECTUOUS EXCHANGES
 MAKE CONCESSIONS
 DEEP ANALYSIS OF THE PROJECTS
NEEDS
 BE REALISTIC REGARDING THE PROJECT

21. Thank You for your Attention

22. 124 QUAI DES CHARTRONS 33300 BORDEAUX
37 PLACE ABEL SURCHAMP 33500 LIBOURNE
SARL VITI TRANSACTIONS ASSOCIES (Filiale de la Caisse Régionale de Crédit Agricole d’Aquitaine) dont le siège
social est
124 Quai des Chartrons 33300 BORDEAUX, société à responsabilité limitée au capital de 50 000€,
inscrit au Registre du Commerce et des Sociétés de Bordeaux sous le numéro 798 091 096, titulaire de la carte
professionnelle
n° 33063-3420 portant mention «Transactions sur immeubles et fonds de commerce et gestion immobilière» délivrée
par la Préfecture de la Gironde et garantie par la CAMCA 75008 PARIS
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