California firm buying, leasing Oregon vineyards

The Seattle Times reports:

A group of developers from the Napa Valley is launching a new business model for Oregon's wine industry, after spending the past several years developing six vineyards in Polk and Yamhill counties.

Backed by pension-fund cash from California, the company, Premier Pacific Vineyards, is neither a winemaker nor a grape grower, in the traditional sense.

Instead, investors hope to enter into long-term vineyard-lease agreements with wineries or sell the vineyards in five to seven years.

Premier has formed a venture with the California Public Employees Retirement System, which has provided $200 million to develop vineyard property in the Northwest and California. About $20 million of that is dedicated to Oregon projects.

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