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News
Diageo sells Napa holdings
Realty Income Corporation has bought the wineries belonging to Diageo’s Chateau & Estate Wines for USD$269 million.
The bulk of the deal has already been closed and the remaining $11.1m for the final property is expected to close in the next month.
The two properties, Sterling Vineyards and Beaulieu Vineyards, are located in Napa Valley and cover over 1,690 acres of vineyard. Their production facilities and retail and visitor operations were included in the sale.
Under the terms of the agreement Realty Income will lease the wineries back to Diageo for a 20-year period.
Chateau & Estate Wines will continue to operate and manage the two sites and retain both the ownership and marketing of the two brands.
The move is part of Diageo’s reworking of its North American business. The company announced in May of this year that non-priority brands would be sold and up to 90 jobs would be lost as a result.
Rupert Millar, 01.07.2010