Realty Income Corporation Acquires Diageo Chateau & Estate Wines Properties in Napa Valley

Strategic Insights -

Realty Income Corporation, a US-based equity real estate investment trust, has completed the acquisition of Diageo Chateau & Estate Wines properties in Napa Valley, with Diageo closing $258 million of the approximately $269 million transaction. The properties include 1,690 acres of vineyards, winery, production, retail, and visitor center buildings of the Sterling Vineyards and Beaulieu Vineyards wineries. This deal allows Diageo to lease back the properties for 20 years, enabling the company to retain ownership of the brands, vines, and grapes.

Key Takeaways:

  • The acquisition includes 1,690 acres of vineyards and various winery and production facilities.
  • The deal was valued at approximately $269 million, with Diageo closing $258 million.
  • Realty Income will lease the properties back to Diageo for 20 years under a lease agreement.
  • Diageo retains ownership of the brands, vines, and grapes, allowing them to continue operating the properties.
  • The Bank of America Corporation acted as financial advisor to Diageo.
  • The acquisition is part of Diageo's strategic plan to focus on its wine business.

Statistics:

  • The acquisition value: approximately $269 million
  • Amount closed by Diageo: $258 million
  • Vineyard acreage: 1,690 acres
  • Lease term: 20 years
  • Closing date: June 30, 2010

Sources:

  • Datamonitor Financial Deals Tracker via COMTEX
  • COMTEX SmarTrend Alert
  • Datamonitor
  • Diageo PLC
  • Realty Income Corporation
  • Bank of America Corporation