Petaluma, an Australia-based winery owned by The Lion Group, is to build a new winery on the Adelaide Hills at Woodside farm in South Australia.
The decision comes as the lease on the current Piccadilly winery site is about to expire.
Having purchased the 36ha Woodside farm in 2007, the winery will now invest over $10m to construct the new winery at the site, which already has three hectares of vineyards and a development center.
The winery, however, will modify it to add a bottling plant, packaging plant and storage area for its sparkling Croser wines that needs years of maturation.
Petaluma senior winemaker Andrew Hardy said they had options to buy the existing Nairne winery and other regional sites, but finalized on Woodside.
"We want to incorporate all aspects of the business in one spot so it's better essentially to start afresh," said Hardy.
The new winery expects to roll out its first vintage in 2015.
