TPG Capital considers sale of Inghams farm assets

US private equity firm TPG Capital is considering a sale of 53 farm properties of Australia’s leading poultry processor Inghams Enterprises, for around A$650m.

The move comes just a year after the private investor acquired the majority of Ingham’s assets in an A$880m deal.

CBRE agribusiness director Danny Thomas and client relationships and projects executive managing director Mark Granter have been appointed to manage the sale process.

The proposed sale includes industrial and agricultural properties across Australia and New Zealand.

The properties have been divided into two portfolios, with Portfolio 1 – Industrial, including processing plants, feedmills and hatcheries, and Portfolio 2 – Agricultural/Rural comprising breeder farms.

Granter said, "The properties are strategically located across Australia and the North Island in New Zealand and are, with one exception, being offered on lease terms of 20 years with five further 10 year options."

Thomas said, "The sale represents a once in a generation opportunity to acquire such an extensive and strategic group of properties. A key attraction for buyers would be the structure of the lease agreements to Ingham, one of the region’s most respected poultry companies."

Ingham CEO Kevin McBain commented, "The sale of the two property portfolios will release capital and provide us with an opportunity to invest in business growth and improvement initiatives across our poultry and stockfeed operations in Australia and New Zealand.

"Ingham 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."

McBain said that the company will continue its day-to-day operations as usual.

Inghams produces chicken and poultry products under the Ingham Chicken brand and operates across Australia and New Zealand.