Snapshot: Watershed's looks to overseas investors

Watershed Premium Wines managing director Geoff Barrett said his company would turn to foreign investment to continue in its push to plant a total 240 hectares of vineyards.

Watershed last week closed a managed investment scheme prospectus which raised $7.5 million to fund the third stage of its vineyard plantings.

The group will return to the market to raise a further $4.9 million by June 15, which will complete the $12.9 million needed to fund the development of 60ha of vines.

The third stage plantings will extend the group’s vineyards to 177ha. Mr Barrett said he was negotiating for a potential $6 million to $10 million investment from a Chinese investor, which would help fund the winery’s expansion plans.

Mr Barrett said Watershed had set out to plant 240ha since its inception because it needed to generate economies of scale in order to be profitable.