(Wines&Vines) - The crop of vineyard-oriented investment opportunities that emerged in the run-up to the 2008 financial crisis tipped the strong market for agricultural land and investors’ appetite for wine-related investments in general.

Now, with investments by Vintage Wine Trust LLC and CalPERS fading with memories of the Great Recession, new ventures are putting forth shoots.

Backed by more than $2 million in private equity raised from investors, Encore Vineyards Ltd. is building a 25,000-square-foot winery with annual production capacity of 30,000 cases. Set for completion this summer, the venture will produce the two brands owned by principal and CEO Harry McWatters—the McWatters Collection and Time Estate Winery—as well as custom-crush work for five other wineries.

The facility also will provide equipment and services that are beyond the reach of smaller vintners, such as a reverse-osmosis system and remediation of smoke taint. “We can assist wineries even if we’re not making their wine,” McWatters said. “Some of the services we can provide existing wineries will enhance our business model as well as helping them elevate the quality of their wines.”

Making a deal

While the new facility is adopting the model of a number of other facilities in the Okanagan—Okanagan Crush Pad in Summerland and B.C. Wine Studio in Okanagan Falls among them—its financing model is distinct.

Sure, companies such as Vincor International Inc., Andrew Peller Ltd. and Boltons Capital Corp. (a former owner of Hester Creek Estate Winery) have been involved in the public markets. Black Hills Estate Winery and Terrabella Wineries Ltd. have also sought private equity to fund their ventures.