Foster's Group Limited has entered into a new lease over two Australian vineyards from the Challenger Wine Trust.

The Cocoparra and Woods Vineyards, located in New South Wales, were previously leased to the Evans & Tate subsidiary Cranswick Estates, the trust said today (11 October). Foster's now occupies almost 4% of Challenger's portfolio.

CWT's fund manager Nick Gill said: "Not only have we negotiated a new lease to a high quality tenant in FGL, we have been able to secure a rental income in FY08 that ensures no lost income for CWT on these properties."

The trust said that the Gnangarra vineyard located in Manjimup, Western Australia, is now the only remaining vineyard previously leased to Evans & Tate. The site is currently under Challenger's caretaker management, and discussions are continuing with a number of parties to either lease or purchase the vineyard, CWT concluded.