This article is from the Australian Property Journal archive
QUBE Logistics Holdings has bought out Stockland's 55% interest in the Moorebank Industrial Property Trust for $123 million.
The latest transaction comes hot on the heels of Qube paying Westgate Ports $47 million for its assets at Victoria Docks in Melbourne and teaming up with Salta Properties to develop logistics and warehouses.
Yesterday Qube increased its holding in Moorebank to 85% after buying out Stockland’s share, with the remaining interest owned by QR National.
The Moorebank trust owns Department of Defence National Storage and Distribution Centre, located 26km south west of the Sydney CBD and provides a lettable area of 238,876 sqm on a 82.9 ha site. The DoD leases the entire site which forms part of a 500 ha defence precinct.
“Qube is pleased to be able to increase its stake in this key infrastructure project which is critical to improving the productivity and efficiency of the freight task to and from Port Botany,” Qube managing director Maurice James said.
“Subject to state and federal government approvals and agreement with the current tenant of the property, we believe stage 1 of the project could commence operations to Port Botany by 2014. The billion dollar project will be fully funded by the private sector,” he added.
“The project has already been the subject of rigorous environmental assessment as part of the ongoing planning process and the lodgement of the EA will trigger a further round of full public consultation.
“Expert studies have found that the Moorebank intermodal terminal would remove more than 18,000 truck movements per week between Port Botany and Moorebank, reduce greenhouse gases and improve overall air quality,” James said.
Under the terms of the sale agreement, Stockland will continue to act as asset and development manager of the site until completion which is expected to occur by the end of June 2012.
QR has pre-emptive rights under the unitholders agreement to acquire a proportionate share of Stockland’s units on the terms agreed with Qube. Should QR exercise these rights, Qube’s unitholding would be approximately 67% and QR would own the remaining 33%. QR has 30 business days to exercise its pre-emptive rights.
Qube will fund the purchase through a combination of debt and available cash.
The disposal represents a discount to Stockland’s book value of $138.0 million.
Managing director Matthew Quinn said the sale price represents an exit yield of 7.5% and the lower price reflects the complex and long-term nature of the project.
Stockland increased its stake in the trust in September 2007 from 24.9% to 55%, which owns the DoD National Storage and Distribution Centre, valued at the time for $301 million. Setup in 2003, the trust had been managed by Westpac Funds Management, who bought the property from the Commonwealth Government for $190.13 million in May 2003.
Stockland CEO commercial property John Schroder said whilst the proposed Moorebank Intermodal terminal remains a key NSW infrastructure project, it is not aligned with the group’s strategy.
Stockland will use the money from the sale to extend its on-market security buyback to up to 10% of issued capital.
So far into FY2012, Stockland has sold $918 million worth of assets.
PropertyReview
