W. P. Carey Inc. Announces AUD 157 Million Acquisition of Inghams' Portfolio of Australian Properties

-- Triple net-lease transaction with private equity-sponsored company expands global footprint
2014-11-13 04:30 1978

LONDON, Nov. 12, 2014 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a global net-lease REIT, announced today that it has completed a 20-year sale-leaseback transaction with Inghams Enterprises Pty. Limited (Inghams) in relation to a portfolio of 31 Australian industrial and agricultural properties for approximately AUD 157 million. Inghams is owned and managed by global private investment firm TPG.

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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 AUD 2.3 billion for the fiscal year ended March 31, 2014. Inghams is the primary supplier of poultry products to Woolworths, 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-leaseback transaction: TPG acquired Inghams in June 2013 and is a leading global private investment firm founded in 1992 with over AUD 63 billion of assets under management. W. P. Carey, a net-lease REIT specializing in corporate sale-leaseback, build-to-suit financing and the acquisition of single-tenant net-lease properties, has an established history of providing financing to private equity-sponsored companies, having closed 85 such transactions, totaling AUD 2.7 billion.
  • Long-term lease: 20-year triple net-lease.

Management Commentary

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, said:

"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."

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This press release contains forward-looking statements within the meaning of the Federal securities laws. The statements of Ms. Shui are examples of forward looking statements. A number of factors could cause W. P. Carey's actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact W. P. Carey, reference is made to its filings with the Securities and Exchange Commission.

Press contact:
Guy Lawrence
Ross & Lawrence

Institutional investors:
Peter Sands
W. P. Carey Inc.

Source: W. P. Carey Inc.
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