Shinsegae Property, the property development arm of Korea’s retail giant Shinsegae, said Wednesday it has acquired US winery Shafer Vineyards for 299.6 billion won ($250.3 million) to boost the group’s wine business.

“With the acquisition, we plan to further expand the group’s wine business by creating synergy with its Shinsegae L&B that is in charge of the wholesale distribution of wine and liquor,” a Shinsegae Property official said.

Industry sources say since Shinsegae L&B already has its own wine shop brand Wine and More, the company could expand its share in the local wine market by adding premium wine lineups produced in Shafer Vineyards in California’s Napa Valley.

As of last year, Shinsegae L&B has logged some 200 billion won in sales revenue -- a record-high figure -- thanks to a drastic growth of the local wine market, driven by a burgeoning trend of hosting house parties due to the coronavirus pandemic, sources said.

The company stressed that Shafer Vineyards has huge growth potential in its property value.

“Between 2014 and 2020, Napa Valley had already shown 9 percent growth in its real estate price. The property value of the area is expected to grow in the future as well,” the official said.

In addition to the company’s recent bid to acquire IFC Seoul, Shinsegae Property plans to diversify its investment portfolio to the global property market as well, the official added.

Located in Napa Valley’s Stags Leap District, Shafer Vineyards owns and cultivates more than 80 hectares of vineyards.