Global net lease REIT and sponsor to non-traded REITs, W.P. Carey, has completed a $138 million transaction involving a portfolio of 31 Australian industrial and agricultural properties. The 20-year sale-leaseback transaction with Inghams Enterprises Pty. Limited (Inghams) is valued at $157 million AUD.
As Australia’s largest poultry producer and one of the most recognizable food brands in the region, Inghams has approximately 35% market share and generated revenues of about $2.1 billion (AUD $2.3 billion) for the fiscal year ended March 31, 2014. Inghams supplies poultry products to Australia’s largest supermarket chain and has relationships with McDonalds and KFC.
The assets in the portfolio are essential to Ingham’s business and are located on properties where there is room for future expansion. The properties are under a 20-year triple net-lease with W.P. Carey.
Grace Shui, Managing Director of W. P. Carey Asia, commented, “The transaction with Inghams represents W. P. Carey’s first investment in Australia and reflects our established position as a source of financing for creditworthy private equity-sponsored and privately held companies, as well as our strategy of owning and expanding a well-diversified real estate portfolio. Inghams is a market leader in the Australian food industry with a reputation as a high-quality brand that we are delighted to be partnering with.”
Kevin McBain, CEO of Inghams, added, “The transaction with W. P. Carey enables us to strengthen our balance sheet and accelerate our strategic growth plans. We are delighted to be partnering with W. P. Carey, who can provide a long-term commitment to our business and have a strong history in sale and leaseback transactions.”