This article is from the Australian Property Journal archive
AFTER months of exclusive negotiations, Qube and Logos Property Group have struck a non-binding $1.65 billion agreement for the developer to acquire the Moorebank Logistics Park in Sydney’s south west.
Under the potential deal, Logos would acquire 100% of Qube’s freehold land in the logistics park (MLP), 100% of Warehouse Trust, which is the leasehold interest in MLP warehouses, and Qube’s 34% interest in Land Trust, the leasehold interest in MLP land.
Logistics provider Qube will retain its 100% interest in intermodal rail terminals and terminal operations.
The finalised binding transaction documents are expected to be entered into during the current half.
A consideration of circa $340 million is deferred and the remainder payable on financial close. A deferred payment will be partially drawn down to fund construction of stage one of the interstate terminal, and the balance is payable with delivery of certain planning approvals. Logos will fund and deliver the balance of development including funding of the Woolworths warehouse distribution facilities.
Encompassing 243 hectares, the under-construction intermodal freight facility will be the country’s largest. It is being developed on land owned by the Commonwealth and next to land held by Qube. Qube had been tipped to sell at least half of the land trust and warehouse trust, and remain owner the terminal trust.
Any transaction would be subject to a range of third-party approvals including from the Australian government entity, Moorebank Intermodal Company.
Speculation had been that a deal would be worth over $2 billion. Qube confirmed back in October, after weeks of speculation, that Logos was on the brink of edging out rivals including ESR, Charter Hall, Blackstone and Dexus.
“The proposed transaction will allow Qube to realise a strong value for the MLP Property Assets and focus on growing its core logistics business, all while retaining exposure to long- term growth in container volumes at MLP through terminal and logistics activities,” Qube’s managing director Maurice James said.
“The transaction de-risks delivering the MLP development and warehouse leasing and significantly reduces Qube’s ongoing capex requirements.”
Qube also sold off a 30.6 hectare automotive logistics park in Sydney’s Minto to Charter Hall in July, for a price of $207 million, during the first half of the financial year. Its underlying net profit after tax for the period was 9.3% higher on the prior corresponding period, at $953.3 million, despite a 1.7% fall in revenue.
