Realty Income closes bulk of winery acquisition

ESCONDIDO, Calif.

Realty Income Corp. said Friday it has closed on the bulk of its acquisition of Diageo Chateau & Estate Wines properties in Napa Valley.

The real estate investment trust said it has closed $258 million of the roughly $269 million transaction. One property for $11.1 million is expected to close in the next 30 days.

The properties are located throughout the Napa Valley wine country in Northern California and include 1,690 acres of vineyards, as well as the winery, production, retail and visitor center buildings of the Sterling Vineyards and Beaulieu Vineyards wineries.

They have a combined leasable space of about 394,000 square feet.

Under the terms of the deal, Diageo Chateau & Estate Wines will continue to manage and operate the properties and retain ownership and marketing of their wine brands.

Shares in Realty Income added $1.05, or 3.4 percent, to $31.70 in afternoon trading.