Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Caniwi Capital in $57mln purchase of Inghams properties

Caniwi Capital in $57mln purchase of Inghams properties from US investor

By Pattrick Smellie

July 18 (BusinessDesk) - Wellington property investor Caniwi Capital has bought and leased back seven of nine New Zealand properties housing Inghams Enterprises chicken farming operations in a $57 million deal that releases capital for Texas Pacific Group, the US private equity firm that paid A$880 million for the Australasian Inghams operation in March last year.

The transaction represents the New Zealand leg of TPG's plans, announced in March this year, for the sale and leaseback of A$650 million of Inghams properties in Australia and New Zealand.

With a portfolio of New Zealand properties worth some $210 million after the Inghams transaction, Caniwi specialises in very long term leased properties, taking a greater interest in the quality of leasehold arrangements and cashflows than traditional commercial property investors, who are generally more attracted to shorter leases and property valuation.

Inghams will continue to operate the facilities and has leased them from Caniwi for an initial term of 25 years with rights of renewal for a further 50 years. The properties are located largely in the rural areas around the Waikato region.

"The common theme in the assets acquired by Caniwi is exceptionally long term leases with annual rent increases linked to (inflation) with high quality tenants," said Caniwi chairman Troy Bowker. Caniwi's weighted average lease term (WALT) of 19 years represented a low risk investment philosophy and is in tune with other assets in its portfolio, including a newly renovated office building in Tory Street Wellington leased to ANZ Bank on a new 12 year lease, a student accommodation building in Boulcott Street, Wellington, leased to Victoria University on a 15 year lease, and two chicken processing plants leased to Tegel on 25 year leases.

Bowker told BusinessDesk that Caniwi has no plans "at this stage" to take its offering public, and is pursuing a strategy for earnings "more in common with a structured bond investment."

"You never rule anything out," he said of future plans for Caniwi, which he established four years ago after returning to New Zealand from an international banking career. "But our gameplan hasn't changed. We will just keep on acquiring these really solid long term leases. We believe there's some arbitrage."

However, the prices on available transactions in Auckland were "fairly toppy", while the company's focus on long term leases meant that "provincial locations are providing good buying opportunities."

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Bad Day For Rope: Donaghys Job Losses Another Blow To Dunedin

The loss of 30 jobs from Donaghys rope and twine factory is yet another blow to the people and economy of Dunedin, says Dunedin South Labour MP Clare Curran. More>>

ALSO:

Oil: 2014 New Zealand Petroleum Summit

Simon Bridges: Our abundance of energy and minerals resources provides us with unique opportunities to build the New Zealand economy.

Over the past three years the Government has made significant changes to how the sector is regulated. More>>

ALSO:

WWF Report: Solutions In Reach; World Biodiversity Suffers Major Decline

Global wildlife populations have declined by more than half in just 40 years as measured in WWF's Living Planet Report 2014. Wildlife's continued decline highlights the need for sustainable solutions to heal the planet... More>>

ALSO:

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news