Gunns is looking to offload its Tamar Ridge vineyard in northern Tasmania as the company looks to streamline itself as a sustainable forestry operator.
According to The Australian Financial Review, Victoria's Brown Brothers, which does not currently have any operations in Tasmania, is a likely buyer.
Former Gunns chairman John Gay bought Tamar Ridge in 2003 for nearly $15 million from founder Josef Chromy. The Launceston-based timber giant has since dumped close to $70 million into expanding the business, which now consists of five sites across 413 hectares of cool-climate vines, with seven labels including Devil's Corner and Pirie.
Tamar Ridge is one of the biggest vineyards in the Tamar Valley and its Kayena property sits across the river from Gunns's planned $2.2 billion pulp-mill project site. Some of the property is encumbered by managed investment schemes, which would have made the sale process more complicated.
It is expected that Tamar Ridge will fetch between $30 million and $40 million, according to sources close to Gunns.
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