Vineyard Levantine Hill lands on opportunistic credit fund’s radar
Yarra Valley winery Levantine Hill, maker of $600 bottles of chardonnay and owned by Melbourne property grandees, has pricked the ears of a special sits credit fund.
Levantine Hill owner Elias Jreissati and winemaker Paul Bridgeman.
Street Talk understands Arbitrium Capital Partners held talks with Levantine’s owners, the Jreissatis of Bensons Property Group, for a potential $160 million refinancing that would replace existing bank debt and bankroll an under-construction 33-room luxury hotel in the Yarra Valley.
The term sheet, seen by Street Talk, said the five-year facility would be split into two cross-collateralised tranches with a 60 per cent loan-to-value ratio. It was structured as a senior secured loan, with potential backers being told Levantine’s freehold land had a $110 million current market value, while its winery and associated businesses were worth $129.4 million.
Arbritium went as far as to seek co-investors for the deal but was eventually knocked back by the Jreissatis given its double-digit interest rate, sources said. It had been lining up co-investments in $25 million units as of September end. It was a departure from its usual hunting ground of distressed assets.
It is understood the family – which made its fortune developing apartments in Melbourne including in the inner-city suburb of Carlton – is not actively seeking debt for the project and is funding the hotel’s stage one construction itself.
Nevertheless, Arbitrium’s sell-side pitch painted a rosy picture of Levantine Hill’s prospects, telling potential backers the borrower would have two quarters of interest payments held in cash at all times. And deal metrics would improve further, as Levantine Hill further developed its integrated vineyard,
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