INGHAMS' assets have been offered in a sale and leaseback agreement as the company looks to raise money for business growth.
The 53 properties of Australasia's largest integrated poultry company are divided into two portfolios - Industrial and Agricultural/Rural - in a bid to attract investment from different sectors.
CBRE's Mark Granter, who will manage the sale, declined to comment on a possible sale price but Fairfax Media reported private equity firm TPG, who owns Ingham Enterprises, were seeking $650 million for reinvestment.
Mr Granter expected the Industrial portfolio, which included processing plants, feedmills and hatcheries, to represent 75 per cent of the total sale and would be supported by private investment groups.
Breeder farms are part of the Agricultural/Rural portfolio, which would attract more specialised agribusiness funds, he said.
"The (Industrial) assets are more appealing to the investment market than the operational market," said Mr Granter, who believes CBRE's canvassing trips to the Middle East, Europe and Singapore will attract foreign interest.
"The barriers to entry in the poultry industry are enormous which makes the offer appealing," he said.
Properties in both portfolios, which span across Australia and New Zealand, will be offered on lease terms of 20 years with five further 10 year options.
The lease back arrangement suited both parties, according to Mr Granter.
"To try and get long-term leases in this market is so difficult," he said.
"For an investor there's the security of an income stream and the quality of real estate."
Mr Granter said Inghams had similar numbers of processing plants, feedmills, hatcheries and breeder farms in each State.
In Victoria, processing plants at Somerville and Thomastown, a hatchery at Pakenham and feedmill at Clyde will be sold along with four breeder farms at Charlton, Nar Nar Goon, Darnum and Pakenham.
Inghams' chief executive Kevin McBain said the sale of the two property portfolios will release capital and provide the company with an opportunity to invest in business growth and improvement initiatives across their poultry and stockfeed operations in Australia and New Zealand.
“Inghams is, as always, committed to growing the business and the nature of the sale and leaseback agreements enables us to continue to offer our customers the highest levels of quality and service. The day-to-day operations will continue to run as usual,” Mr McBain said.
CBRE's regional director agribusiness Danny Thomas described the offer as a "once in a generation opportunity", given the number of strategically placed properties.
Expressions of interest in both portfolios close on April 15.
More in Stock & Land's March 13 edition.
