Singapore-based real estate investment trust Soilbuild Business Space REIT has proposed the acquisition of a poultry processing plant in Burton, South Australia.
The plant is currently being leased by Ingham’s, which according to the WATTAgNet Top Poultry Companies Database is Australia's largest producer of poultry meat, supplying about 40 percent of the domestic poultry market.
The company intends to purchase the plant for AU$61.25 million (US$43.95 million).
The company described the plant as a “substantial production and processing facility which includes high clearance and cold room, modern office and workshop facilities and expansive hardstand areas.”
“We are excited by this opportunity to gain entry into the Australia market with an acquisition of a portfolio of long-tenure assets on leaseback arrangements with financially strong tenants,” Roy Teo, chief executive officer of Soilbuild, stated in a press release.
Soilbuild, in its press release, stated that Ingham’s has achieved “stable financial performance since its listing in November 2016 on the Australian Securities Exchange.
The Ingham’s lease of the building is set to expire in October, 2034.
In addition to having an industry-leading presence in Australia, Ingham’s also has operations in New Zealand. The company in currently in search of a new chief executive officer as its last CEO, Mick McMahon, resigned in August. McMahon previously announced he would step down following the release of the company’s fiscal year 2018 financial results. Quinton Hildebrand, currently Ingham’s chief commercial officer, is serving as the acting CEO.
Another proposed acquisition
Soildbuild Business Space REIT has also proposed to acquire an office building in Canberra City for the price of AU$55 million (US$39.47 million). Upon the closure of the acquisition of the two properties, the company would own 11 properties in Singapore and two in Australia.
Both acquisitions are expected to close in the third quarter of 2018.
