Diageo Enters Sale and Leaseback Arrangement in Napa

Dear Client: Diageo has entered into a sale and leaseback arrangement in respect to certain land and facilities located in Napa Valley, the company said this morning. Its value is estimated at approximately $260 million (£174 million). The land and facilities will be purchased and leased back to Diageo by Realty Income Corporation under a 20 year lease, with Diageo holding options to extend the lease for up to 80 years in total. Diageo Chateau and Estate wines (DC&E) remains