Brookfield has exited its investment in Australian coal export terminal operator Dalrymple Bay Infrastructure with the sale of its final 26% stake for A$527m (€297.5m).
DBI owns the Dalrymple Bay Coal Terminal, the world’s largest metallurgical coal export facility located in Queensland’s Port of Hay Point, which allows coal miners in the Bowen Basin to ship their products to clients overseas under take-or-pay contracts. It is held under a 99-year lease through 2100.
The Canadian investor gained control of the terminal during the global financial crisis in 2010. It undertook a A$1.8bn recapitalisation of the asset, which was previously owned by now defunct Babcock & Brown Infrastructure.
Brookfield listed the business in 2020 and retained a 49% interest. In June, it sold down a 23.2% interest in a deal worth A$428m.
A source familiar with the company told IPE Real Assets: “Investors who acquired shares in the IPO and still hold them today have more than doubled their money in those 5 years, with compound annual returns exceeding 16%.
“That strong performance is a function of DBI’s low-risk model, steady organic growth and strong cash distribution profile. DBI provides a unique investment proposition to public market investors given the relative shortage of listed infrastructure companies.”
The source added: “The sell-down is consistent with Brookfield’s long-established and successful capital recycling program where it sells mature, stable infrastructure assets to fund new investments.”
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