International and Australian investors are circling the $650 million sale of Ingham Enterprises' property portfolio after the first round of bids closed during the week.
Private equity firm TPG put the two portfolios on the market last month, in what was described as a ''once in a generation'' sale and leaseback.
The Ingham family sold the business to allow Bob Ingham to focus on his horse racing operations.Credit: Kerri-Anne O'Sullivan
The assets comprise 53 industrial and agricultural properties across Australia and New Zealand, with the cash to be reinvested in the business, one of the country's largest poultry companies.
CBRE's Danny Thomas and Mark Granter are managing the sale process, which is said to have garnered interest from investors in the Middle East, China and overseas private equity firms.
Some local real estate investment trusts, such as the Goodman Group, are also said to have shown interest in the sale, but more for the industrial assets.
The Ingham family sold the business to TPG in March last year for $880 million - including the operating business - allowing the sole patriarch, Bob Ingham, to focus on his horse racing operations.
Mr Granter said recently that the properties were strategically located across Australia and the North Island of New Zealand and were, with one exception, being offered on lease terms of 20 years, with five further 10-year options. The move to release ''idle'' cash off a balance sheet through a sale and leaseback started close to 20 years ago by the major banks and supermarkets, who decided it was more profitable to lease the properties and use the cash to build the businesses.
Westfield has, in the past decade, also opted to retain a small ownership of its centres to retain the management, but let property experts own the physical assets.
The Ingham portfolios are divided into two. One is industrial, such as processing plants, feed mills and hatcheries, and the other is agricultural/rural, comprising breeder farms. Last month, Mr Thomas called the Ingham sale a ''once in a generation'' opportunity to acquire such an extensive and strategic group of properties.
He said a key attraction would be the structure of the lease agreements to Ingham.
Kevin McBain, Ingham's chief executive, said the sale of the two portfolios would release capital and provide the group with an opportunity to invest in business growth and improvement initiatives across the poultry and stockfeed operations in Australia and New Zealand.