BUSINESSMEN Bernard Arnault and Albert Frère expand their assets in the Bordeaux region with the recent purchase of a wine property in Saint Emilion :
Château Quinault, with it's 15 hectares of AOC Saint-Emilion, is situated in Libourne. It's new owners are amongst the wealthiest men in Europe : Frenchman Bernard Arnault, boss of Louis Vitton Moët Hennessey (haute-couture fashion, champagne & cognac), the world's number one in luxury products, and his Belgian counterpart, Albert Frère, shareholder in various multi-national companies such as Suez and Lafarge cements. If all goes well, the final act of sale will be signed today.
The two men also own, in a private capacity, the illustrious Château Cheval Blanc (Saint-Emilion) since 1998. Another addition to their private collection is a close neigbour to Cheval Blanc, Château La Tour-du-Pin (8 hectares), acquired in 2006.
Bernard Arnault's company, LVMH, owns Château d'Yquem, king of Sauternes.
"This acquistion is an inheritance investment", explains an employee. "In legal terms, the company which runs La Tour-du-Pin is the buyer. This is an entirely different entity from Cheval Blanc and d'Yquem". Château Quinault will be managed by Pierre-Olivier Clouet.
Alain Raynaud, who bought the property in 1997, had to resign himself to sell. "I hadn't bought the château with the intention of selling it on! But the bank did not follow through. Banks are always ready to help those with healthy finances but when trouble hits, they disappear.." Raynaud, who was a general practionner for 25 years before devoting himself to viticulture goes on to explain, " I couldn't afford to continue the investment plan for high quality production which had been our ambition for years. We were victim to frost in 2002 and then to hail in 2004. In the middle, the 2003 "heat-wave" vintage gave us a low yield. These are setbacks you don't recover from easily, even if our wine sells for 25 euros a bottle."
Heart-breaking decision : Alain Raynaud is one of the most respected men in the Libourne area. As ex-vice president of the Bordeaux Grand Cru Union (promotional organisation regrouping over a hundred prestigious properties), he also founded the "Right Bank Circle" in 2003, a similar association of Libourne/saint-Emilion properties.
Although it broke his heart to sell Château Quinault, he admits he is satisfied with the financial deal (without giving away the sale price) and that his massive investment in the property served to attract the new buyers, looking for quality potential.
At age 60, Alain Raynaud continues his activities in the wine world. He manages two family-owned properties in Pomerol : Châteaux La Croix-de-Gay and La Fleur-de-Gay (12 hectares in total) with his sister. He is also a consultant for a dozen other properties in the area.
César Compadre
doc@sudouest.com
S.O. 04/09/08
Translated by Maxine Colas.