Quinta dos Vales is a unique project which has reached its final stage of development. Its value lies in its constant evolution and appreciation of its tangible and intangible assets.
From humble beginnings in 2007, this boutique winery has surpassed expectations and built up its brand to an impressive standard in an extremely conservative and competitive market.
It is now one of the most recognized wineries in southern Portugal and is synonymous with quality in more than one business sector:
- the wines have been strategically aimed at a niche market for mid-range to high quality wines, capping production in order to ensure a finer product, a strategy that has so far earned over 100 medals and awards;
- the art is promoted in unison with the wine, adding to the brand recognition of the wine and the estate itself as well as providing an extra cash revenue;
- the uniqueness of the wine estate, through the overall high-standard build, manicured gardens, spacious facilities, art exhibitions and professional service, makes this a popular venue for all types of events. As well as for daily visits, wine tastings, guided tours and excursions are on offer;
- the on-site accommodation is the perfect add-on for the events sector but it has also proved capable of generating revenue as a stand-alone service and helps market the wine estate and its multiple business sectors further whilst the guests are exploring what is on offer to them.
The volume of the so-called service sectors (events, activities, accommodation) has significantly increased in the last years, and with the completed construction of new facilities as well as refurbishment of existing ones Quinta dos Vales is prepared for continued growth in these sectors. It is well on its way to becoming a prime venue in this tourism based region. The wines have reached their full potential and market value increases with every year that passes.
In short, Quinta dos Vales should be seen as a project that is permanently increasing its asset value through its brand. This is achieved organically by its growing status and prestige in the wine and service sectors.
Now, having reached positive cash-flow contributions of both the wine as the service-sectors, new products have been and will be introduced to the market.
The Winemaker Experience, a fully integrated service offer which allows clients to grow and produce their own wine with the assistance of the estates winemakers, was introduced in late autumn 2017 and has received an immense media as well as client feedback. It is expected that as a result, a significant number of the top wines will now be distributed through the direct winery channels, avoiding the costs of distribution.
In addition and as result of the growing tourist numbers in the Algarve, the first add-on to our rental portfolio has been approved; 32 new apartments will be integrated into our rental offer in April 2019 (16 buildings, which each consist of 2 apartments). The sale and lease back of these units will create both a significant cash flow through sales as well as a steady operational income for the years to follow. In order not to change our tranquil set-up we have created a separate entrance for this development as well as a restaurant and pool area. Between 2020 and 2022 we will continue these sale and lease back operations in secluded areas of the estate with total up to 30 separate buildings (up to 4.000m2).
In conclusion, maintaining the estate in its current configuration, as an asset jewel and tranquil boutique winery with service operations on the side, an investor may expect a gross return of 1,5 to 2%. Whereas if one realizes the envisaged sale and lease back developments with the consequent conversion of farm land into construction land, this will give the estate more of a resort character with an expected gross return of between 5 to 7%.
1. Wine production
Target capacity (p.a.): 130,000 litres / 175,000 bottles
Wine Turnover: numbers available at request
Quinta dos Vales became the leading wine producer of the Algarve within 5 years of operation (attention paid to quality and reputation, not quantity). It has positioned itself as a boutique winery and the capacity has been capped to ensure this quality. Larger supply demands are covered through a sister company, the winery Quinta do Plansel, Alentejo, which is part of the same holding as Quinta dos Vales. Production capacity 600,000 litres per year.
2. Event Business
Disregarding the rental services, the main financial impact should come in due course through the event business. Currently the wines estate can host 140 people for dinner and up to 300 for standing events at the Panoramic Terrace as well as 320 people for dinner and up to 500 for standing events at our Event Centre Cave de Bacchus. 20% average increase p.a. in the last years.
Each April, the wine estate hosts an 'Open Door' event, where around 3,000 guests are entertained during one day.
Target Event Income: numbers available at request
3. Rentals
A total of 40 beds in 4 renovated upmarket farm houses. Two of the houses have a private pool, and all houses have access to the shared infinity-pool.
Rental Income 2017: numbers available at request
4. Visitors
The amount of daily visitors which are welcome for wine tastings, guided tours, etc. is increasing every year.
Visitors:
2011: 1,000
2012: 3,000
2013: 5,500
2014: 7,000
2015: 8,000
2016: 10.000
2017: 12.000
Merchandising and Cross-selling Income: numbers available at request
5. Team
Export manager and marketing assistant, event manager, accommodation manager, bookkeeper and office-manager, two engineers for the winery and the wine plantations, two high profile oenology experts on a consultancy basis, four permanent farm workers plus a standby team with an average of 10-15 farmworkers for seasonal works.
6. Vineyards Area
Estombar 18.4 hectares
Silves 2.2 hectares
Total vineyards: 20.6 hectares
7. Varieties
Quinta dos Vales
Red: 12.4 hectares of:
– Alicante Bouschet
– Cabernet Sauvignon
– Castelão
– Petit Verdot
– Syrah
– Touriga Franca
– Touriga Nacional
White: 6 hectares (+ / –) of:
– Alvarinho
– Antão Vaz
– Arinto
– Verdelho
– Viognier
– Malvasia Fina
– Síria
Silves
Red: 2.2 hectares of:
– Aragonês
– Cabernet Sauvignon
– Syrah
– Touriga Nacional
8. Distribution
Concentration in the Algarve as the main target market. Export links to mainland China, Malaysia, Singapore, Switzerland (since 2012), Germany, UK and Canada. Strong increases in the Netherlands and Belgium. Stringent risk management through diversification of markets.
9. Awards
Quinta dos Vales does not currently participate in a lot of competitions as we have already won over 100 medals and awards. With one exception (Silver), we were awarded in 2017 only with Gold Medals in competitions.
10. Company Structure and Financing
Limited company controlled and financed by owner.
11. Further Development
2018 / 2019
Construction of 16 units which make up 32 separate apartments (ROI envisaged by 2025 or earlier; future sale and lease-back transactions will pay back the investment, create financial resources for further developments and a signifiant additional operational income (projections on request).
Construction of a solar system (auto consumption based). Financing fully through energy cost savings. ROI below 10 years.
2020 - 2022
Construction of further 30 separate buildings in 3 different locations (up to 4.000m2). Construction to be phased in stages with cash flow generated through the sales and lease back operations in 2018 / 2019. Significant cash flow through sale and lease back transactions plus operational income.
