Aurizon will divest its 33 per cent stake in the intermodal project to Qube
Qube Holdings is moving towards 100 per cent ownership of the Moorebank project after it announced plans to acquire the remaining 33 per cent from Aurizon Holdings for $98.9 million.
The deal, which has Aurizon approval but is conditional upon financial close with Moorebank Intermodal Company (MIC), would see Qube take full control of the Moorebank Industrial Property Trust (MIPT), which owns 83ha of freehold land at Moorebank.
The acquisition would also include all of “Aurizon’s interests in development of the rail terminals and associated warehousing under the 99 year lease agreements across the entire 243ha Moorebank precinct”, a Qube statement says.
Being developed by the Sydney Intermodal Terminal Alliance (SIMTA), the intermodal freight precinct in south western Sydney received the go-ahead from the federal government in June last year on the back of promises to boost jobs and reduce Port Botany container volume constraints, traffic congestion, and freight times.
SIMTA, which will become wholly Qube under the deal, will also operate the open-access freight terminals and associated warehousing.
“We are delighted to be able to secure full ownership and control over such an important project,” Qube managing director Maurice James says.
“We believe it will enhance the deliverability of the project and maximise flexibility for Qube in terms of funding and partnering options for warehouse development”.
With financial close expected by the end of the month, the transaction would see Aurizon receive a premium of around 4 per cent on the value of the property.
In its own statement, Aurizon says the deal will have no bearing on the development at Moorebank, nor will it adversely affect its access to the facility in the future.
Rather, it says it is focused on the Enfield Intermodal Logistics Centre, where it began operations in May.
“The sale of the Moorebank investment follows Aurizon’s securing of a 10-year lease at the nearby Enfield Intermodal Logistics Centre (ILC) owned by NSW Ports,” it says.
“Enfield fulfils Aurizon’s current customer, capacity and operational needs.”
Qube says it will fund the Moorebank acquisition from its “existing undrawn debt facilities.”