TPG Capital has launched a sale process for 53 properties across Australia and New Zealand owned by the region’s largest integrated poultry company, Ingham Enterprises, which the firm acquired last year. The asking price for the two portfolios of properties was not disclosed, but PERE understands that the final price could be in the range of A$650 million (€434 million; $584 million). The Fort Worth, Texas-based private equity manager has appointed property services firm CBRE to manage the sale and leaseback campaign.
“The sale represents a once in a generation opportunity to acquire such an extensive and strategic group of properties,” CBRE’s regional agribusiness director Danny Thomas said in a statement. “A key attraction for buyers would be the structure of the lease agreements to Ingham.”
The 53 properties, 44 of which are in Australia and nine of which are in New Zealand, are being sold with a guarantee of 20-year leases from Ingham, as well as five further 10-year options. The company will pay approximately A$35 million and NZ$4.5 million (€2.8 million; $3.8 million) per year for the first portfolio, which comprises Ingham’s industrial buildings such as processing plants, feed mills and hatcheries, and A$7 million and NZ$2 million per year for the second portfolio, comprising Ingham’s breeder farms.
“The sale of the two property portfolios will release capital and provide us with an opportunity to invest in business growth and improvement initiatives,” Kevin McBain, Ingham’s chief executive, said in the statement. He added that the sale and leaseback arrangement will not impact Ingham’s day-to-day operations.
So far, PERE understands that the portfolios have attracted interest from a combination of domestic and international players, most of them institutional investors. The last day for expressions of interest will be April 15, according to a CBRE advertisement, and the deal is expected to close one to two months after that.
If the sale reaches the suggested price of A$650 million, TPG will have retrieved roughly three-quarters of the A$880 million it spent in buying its 100 percent stake in Ingham last March. Sister publication PEI reported earlier that TPG’s capital for the buyout came from both TPG Asia V, as that fund’s final investment, and TPG Asia VI, as that fund’s first investment.
TPG and CBRE declined to comment beyond the release.