Limoneira’s Windfall Farms nets $15M in all-cash sale
Santa Paula-based Limoneira announced the successful sale of its 724-acre vineyard property in Paso Robles, Windfall Farms, for $15 million in an all-cash deal with a private buyer.
Announced Aug. 17, the sale follows a competitive public auction conducted by Concierge Auctions in cooperation with Sotheby’s International Realty, which started on Aug. 15. The transaction is expected to close by Sept. 14, according to the press release.
The proposed sale of Windfall Farms is just the latest step in Limoneira’s ongoing strategy to monetize non-strategic assets, strengthen its balance sheet, reduce debt, and redeploy capital into higher-return opportunities across its core agribusiness and real estate platforms, according to the press release.
Net proceeds from the sale will go specifically toward specfically to reducing debt and funding avocado acreage expansion. In its latest earnings call June 9, Limoneira raised full-year avocado volume to 5.5 million to 6.5 million pounds from the previous 5 million to 6 million range, while noting that long-term debt was $93.7 million as of April 30.
“The sale of Windfall Farms is part of our stated goal of selling non-strategic assets to enhance shareholder value,” Limoneira President and CEO Harold Edwards said in a press release. “We are pleased with the outcome of the auction process and look forward to using the proceeds to strengthen our balance sheet, reduce debt and support strategic growth initiatives.”
Built in 1984, Windfall Farms is listed as “World-class Central Coast development potential, as its 724 acres span the Paso Robles AVA — California’s fastest-growing wine region,” according to the release. The property was also once owned by television icon Alex Trebek as a Thoroughbred breeding facility, with the land still retaining a 6.5-furlong racetrack and paddocks.
Existing infrastructure, including 4.5 miles of paved roads and 480V three-phase power, supports a winery facility or resort-style tasting room, according to the release.
