Logos has struck a A$1.65bn (€1.1bn) deal with Qube Holdings to buy warehousing and property components of Australia’s largest freight infrastructure project in Sydney’s West.
In October last year, pan-Asian logistics group Logos entered an exclusive due diligence agreement for a stake in Moorebank Logistics Park (MLP) from Qube.
At the time, Qube was trying to sell a stake and/or find a joint venture partner for MLP, which includes Qube’s intermodal freight facility at Moorebank, in Sydney’s southwest.
In the proposed deal, Logos would take over funding and delivery of the balance of development for the MLP project, including the funding of a warehouse distribution facility for supermarket chain Woolworths.
On completion of the transaction, expected during the second half of the current financial year, Qube would continue to retain ownership of the strategic MLP intermodal terminals as well as its options over a site at Beveridge in Victoria for a future intermodal terminal. Qube would retain its 100% interest in the intermodal rail terminals.
The outgoing managing director of Qube, Maurice James, told shareholders that the proposed transaction would enable Qube focus on growing its core logistics business while retaining exposure to long-term growth in container volumes at MLP through terminal and logistics activities.
Combined with the sale of its properties in Minto, also in Sydney’s West, disposed of for A$207m last year to Charter Hall, Qube’s property monetisation process would deliver approximately A$1.86bn of gross proceeds.
James added Qube would reposition back to being a logistics company as distinct from being a logistics and development company associated with the Moorebank development.
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