LOGOS enter $1.65bn deal to Acquire QUBE holdings in Moorebank25 February 2021
In what is one of Australia’s largest single Industrial transactions, Qube Holdings have confirmed that they have reached commercial terms to sell the Morebank Logistics Park (MLP) for $1.65bn to LOGOs.
Under the transaction, LOGOS will acquire 100% of Qube’s freehold land in MLP, 100% of Warehouse Trust (leasehold interest in MLP warehouses) and Qube’s 34% interest in Land Trust (leasehold interest in MLP land).
Qube will retain its 100% interest in intermodal rail terminals and terminal operations activities at MLP.
Qube Managing Director Maurice James said, “Qube is pleased to have reached commercial terms with LOGOS, who continue to recognise the high quality and significant strategic value of MLP. The commercial terms are subject to entry into binding documentation and several conditions including FIRB and the Government owned Moorebank Intermodal Company’s (MIC) approval.”
“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 longterm growth in container volumes at MLP through terminal and logistics activities.”
“The transaction de-risks delivering the MLP development and warehouse leasing and significantly reduces Qube’s ongoing capex requirements. We look forward to forging a strong partnership with LOGOS at MLP and benefiting from its strong tenant relationships and specialist development expertise.”
“Combined with the Minto Properties transaction announced in 2020, Qube’s property monetisation process will deliver approximately $1.86 billion of gross proceeds, with Qube continuing to retain ownership of the strategic MLP intermodal terminals as well as the options over the Beveridge site,” said Mr James.
Qube’s MLP development capex obligations will reduce materially following the transaction, and will primarily comprise completion of the automation of the IMEX terminal and delivery of the Interstate terminal.
LOGOS will fund and deliver the balance of the development for the MLP Property Assets from financial close including precinct infrastructure. In addition, Qube will be relieved of its obligations in relation to future ground rent payable to Land Trust on the warehousing land and the future rail access charges payable to the MIC owned Rail Trust.
An Alignment Deed and Interface Deed are to be put in place in order to align the long-term interests and objectives between the property and logistics activities.
Consideration of c.$340 million will be deferred and the remainder payable on financial close, subject to customary completion adjustments including for working capital and for capital expenditure spent as compared to forecast until financial close. The Deferred payment will be partially drawn down to fund construction of Stage 1 of the Interstate terminal and balance payable upon receipt of certain planning approvals for the remainder of the warehousing development.
LOGOS will fund and deliver the balance of development for the MLP Property Assets including funding of the Woolworths warehouse distribution facilities.
Disclaimer: The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.