TPG raises $550m from Inghams sale

25 Nov, 2014 06:34 AM
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May now pave the way for a float or trade sale for the country's largest poultry producer

PRIVATE investment group TPG has raised a record haul of more than $550 million from the sale of Inghams Enterprises' extensive portfolio of chicken production facilities throughout Australia and New Zealand.

Charter Hall Group was the final piece of the puzzle on Monday after the ­property group confirmed its purchase of $171.4 million worth of the Inghams assets for three of its managed funds.

With the once-in-a-generation sale and leaseback now completed, it may now pave the way for a float or trade sale for the country's largest poultry producer. Earnings before interest, tax, deprecation and amortisation are forecast to grow to $198.3 million in fiscal year 2015.

Charter Hall bought six properties for its Core Logistics Partnership, Direct Industrial Fund and Core Plus Industrial Fund.

The transaction reflects an average ­initial yield of 7.82pc and all properties are 100pc leased to Inghams on initial terms of 20 and 25 years.

Charter Hall joint managing director David ­Harrison said Charter Hall has been re-weighing its exposure to the industrial sector in the last two years, which now sits at $2.35 billion.

"I would expect that the portfolio will keep ­growing at pace for the next couple of years," he said.

The Inghams portfolio, consisting of processing plants, feed mills, breeder farms and hatcheries, was split among different buyers. Inghams is owned and managed by TPG.

CBRE's Mark Granter and Chris O'Brien brokered the deal while Danny Thomas assisted on the agricultural assets. Despite being non-traditional and ­specialised industrial and agricultural assets, groups actively chased the properties for their strong covenants.

The company has lucrative contracts with fast food giants such as KFC and McDonald's, as well as grocery chains Woolworths and Coles.

In July, New Zealand group Caniwi Capital bought the bulk of the New ­Zealand assets for $52 million. The remaining properties in New Zealand sold for under $20 million. Property fund manager CorVal bought six properties worth about $100 million in October, which form the CorVal Ingham Trust.

A private buyer purchased the ­Inghams head office in Sydney's ­Liverpool for $20 million while Ascot Capital also picked up an Adelaide facility for $40 million. Offshore groups also weighted into the sale and leaseback ­campaign. US Group W.P Carey in November finalised the purchase of 31 properties for $157 million.

AFR

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