(Wines&Vines) - Ste. Michelle Wine Estates is the latest buyer to pick up a tranche of vineyards formerly managed by Premier Pacific Vineyards Inc. on behalf of the California Public Employees Retirement System (CalPERS).

CalPERS has steadily divested itself of hundreds of acres in the Northwest over the past year, with purchasers including Jackson Family Wines of California and Seattle-based Precept Wine Brands (see “Hot Spring for Northwest Acquisitions”).

The latest deal gives Ste. Michelle a 298-acre parcel in the Eola-Amity Hills AVA, boosting its overall vineyard holdings in Washington state, Oregon and California to more than 3,800 acres. The parcel includes the 119-acre Willakia Vineyard, which includes 98 acres of Pinot Noir and 21 acres of Chardonnay. Ste. Michelle has designated the vineyard for its Erath Winery but notes that the property offers room for an additional 30 acres of vines and a winery facility.

Terms of the transaction were not disclosed. Developed vineyards in the Willamette Valley have been known to trade in the range of $100,000 per acre, however, potentially valuing Ste. Michelle’s acquisition north of $12 million.

Ste. Michelle president and CEO Ted Baseler was travelling and unable to speak with Wines & Vines, but in a statement announcing the transaction he described the acquisition as a commitment to maintaining Erath’s standing among Pinot Noir producers in Oregon.