W.P. Carey Inks $138M Lease-Back

NEW SOUTH WALES, Australia—W.P. Carey Inc. has completed a 20-year net-lease transaction with Inghams Enterprises Pty. Ltd. in relation to a portfolio of 31 Australian industrial and agricultural properties for approximately $138 million. Inghams is owned and managed by global private investment firm TPG.

"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,” said Grace Shui, managing director of W. P. Carey Asia. “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 lease-back transactions."

Key Facts

• Established market leader: Inghams is Australia's largest poultry producer and one of the most recognizable food brands in the region, with approximately 35% market share, generating revenues of approximately $2.1 billion (AUD 2.3 billion) for the fiscal year ended March 31, 2014.  Inghams is the primary supplier of poultry products to Australia's largest supermarket chain and has long-term relationships with other well-known companies such as McDonalds and KFC. 

• Critical real estate assets: The portfolio assets are critical to Inghams' Australian business, representing the vast majority of its long-term supply chain infrastructure for raw materials, and are strategically located within the company's state-of-the-art logistics system.  The facilities are built to accommodate increased production and located on sites that allow for future expansion.

• Private equity sale-lease-back transaction: TPG acquired Inghams in June 2013 and is a leading global private investment firm founded in 1992 with over $59 billion (AUD 63 billion) of assets under management.  W. P. Carey has an established history of providing financing to private equity-sponsored companies, having closed 85 such transactions, totaling $2.4 billion (AUD 2.7 billion).

• Long-term lease: 20-year triple net-lease.