Le Var, land of Bacchus
Its nectar has improved in quality, its estates are attracting investors.
Nowadays, the “département” of the Var has nothing to envy of the vineyards and wineries of Bordeaux and Burgundy. Its nectar has improved in quality, its estates are attracting investors.
The reputation of Bandol down on the coast has spread well beyond the borders of France. And as for the other “appellations” in the Var - Côtes de Provence, Côteaux Varois and Côteaux d’Aix-en-Provence -, 75 % of whose wines are AOC rosés, they’ve had the wind in their sails for quite a few years. Especially due to the progress made in vinification. With 580 vintners and about 67,500 acres of land under cultivation, they chalk up sales of 450 million euros. This is the oldest wine-country in France. The Phoceans planted the first vines here some two thousand six hundred years ago. And born of this ancestral tradition, a very specific property market has come into being : vineyard estates.
Stéphane Paillard, œnologist with the “Bureau Viticole” (a subsidiary of the Emile Garcin real-estate group), says the enthusiasm got going in 1980. These immense properties with their châteaux which had, until then, only been of interest to members of the wine-making industry, suddenly cast their spell on neophytes. Company directors thought they would be ideal for retirement, while also offering tax advantages. In fact, if the profits obtained constitute the owner’s main source of income, these properties are not included in the tax base applying to “solidarité sur la fortune”. The attractiveness of this measure escapes no-one’s attention ! Another aspect, and not the least interesting, is that acquisition of an agricultural company allows one to extend the buildings as long as the activity justifies it. In the Var, unlike Burgundy or the Bordeaux region, stones and mortar, which had long been of secondary interest, then became the main attraction, accounting for 80 % of the sales price. Whence classic expressions conjured up by estate agents such as “résidences du vin” or “propriétés viticoles d’agrément”. One then realises that profits from the sale of such properties derive more from efforts devoted to the living accommodation than to the vines… But don’t conclude too fast that the latter therefore fell into neglect. Some people talk about “raising” wine, which evokes the magic of this activity and the special skills that it demands. Heavy financial investments do not always compensate for a lack of passion ! But in talking about the realty aspect, one tends to show that an estate serves more as a long-term family investment than a sure source of profitability. Behind this type of purchase lies the desire to acquire land and provide one’s family with a kind of “cement”, or quite simply to exprience a new and unique phase in one’s life.
The clientele corresponds to the legendary “gentleman farmer” wanting to rediscover his roots, authenticity and a pleasant climate. It is comprised of French industrialists, a few north European companies, mostly English, followed by the Scandinavians, Belgians and Swiss. The proportion of French nationals is more significant, a fact that is sufficiently striking in the top end of the market in the South of France to be pointed out.
Dominique Kratz of the Sud Paradise agency sets starting prices at one million euros and cites the example of an estate in the mid-Var : 42.5 acres producing “Appellation d’Origine Contrôlée” wines, a “bastide” of 400 m2 in need of restoration, and outbuildings of the same size. For 23 million euros, one can expect 1,625 acres including 212 acres of vineyards, with a château, hostelry, swimming pool, tennis court, and wine-making carried out on site.
Are these estates, perhaps, turning into places dedicated to leisure activities or the very fashonable agrotourism ?… “It’s not easy to make such a statement”, says Peter Vandenbriele of the Agence du Rocher, “because they still depend on their agricultural vocation. While renting out guest-rooms or bed-and-breakfast is often possible, few owners obtain the right to transform their properties into hotels”.
As a general rule, several years pass between the decision to sell and the estate actually being placed on the market. The transaction is well-prepared : owners have to solve problems relating to finances, inheritance or indivision. Expert advice is essential to avoid any unpleasant surprises. It’s also worth noting that some estates involve tenant farming (where exploitation of the land is entrusted to someone other than the owner). If the new purchaser wants to take over the vine-growing activity, he must negotiate directly with the farmer. One should also be aware that the agricultural association SAFER has a right of pre-emption which is intended to keep estates within the circle of wine-producing entities.
The current trend is summed up by Stéphane Paillard : “People are looking to acquire properties that present no defects”. Long-gone the unreasonable impulse-buying and feverishness of an era marked by the arrival of the euro and a buoyant stock market. The purchaser who wants to count on reselling easily now adopts a highly reflective approach. There are two types of clients : those interested in a fine amenity for wine production - young vintners or companies looking to extend their activities -, and all those drawn by a unique kind of property. These purchasers are between 50 and 60 years old and keep their vineyards from seven to fifteen years. The concern about transmission, once very important in this sector, is tending to fade away : and the desire for personal enjoyment prevails over that of self-sacrifice and hard labour. Clients for vineyards want proximity to main roads and infrastructures, a home with character, a production plant in good condition and a locality that is appreciated in both geographic and social terms. In the ’eighties, buyers were looking for estates of 150 to 200 acres, in the ’nineties, 62 to 75 acres, and since 2000, twenty to 37.5 acres.
This micro-market is oblivious to crises, remaining solely aware of the limits imposed by the number of properties available for sale.
By Laetitia Rossi - photos : Edith Andreotta