A partner in McGrathNicol, an independent, corporate advisory firm, Sam Davies, is arranging the sale of the 77-hectare Clarence Hills Winery in McLaren Vale, after its owners, LST and Metjac, could not make their payment with the banks.
"We are seeing a lot of this and I don't expect this to be the last," Mr Davies said.
"They are overgeared and have not managed cash flows appropriately. The final straw has been a breakdown in their banking relationships."
Raine and Horne's David Gray estimates values for wineries, in general, have dropped 20 per cent in the past year.
"Values on vineyards per se have definitely come back but it is hard to quantify because properties are so different," he said.
Grape types, water accessibility, proximity to neighbours, even the shape of the block all contribute to whether a property will sell but there are few sales taking place.
"Buyers are a bit scared at the moment, but if you have a really good block of shiraz you will sell it.
"Unless you are growing shiraz in McLaren nobody is interested," Mr Gray said.
"I think there will be people whot will have to get out, though. Some people can't absorb the costs."
* Extract from a full report in Stock Journal, April 30 issue.
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