Qube has announced that it has entered into an agreement with Aurizon Holdings Limited to acquire all of Aurizon’s interest in the Moorebank project in Sydney (Australia), conditional upon financial close with Moorebank Intermodal Company (MIC).

The Moorebank intermodal includes an import-export freight terminal connected by rail to Port Botany, with capacity for 1.05 million containers a year, and an interstate freight terminal with capacity for 500,000 containers a year. 

The acquisition includes Aurizon’s 33% interest in the Moorebank Industrial Property Trust (MIPT), which owns the 83 ha freehold land at Moorebank, as well as all of Aurizon’s interests in development of the rail terminals and associated warehousing under the 99 year lease agreements across the entire 243 ha Moorebank precinct. The transaction would bring Qube’s ownership of MIPT and the Moorebank project to 100%.

The total consideration payable to Aurizon is US$98.9 million which implies a premium of approximately 4% to the pre-transaction carrying value of MIPT’s freehold property.

The purchase price will be funded from Qube’s existing undrawn debt facilities.

Qube is presently reviewing a number of options to provide additional medium term funding to support the development of the rail terminals and enabling infrastructure at Moorebank and other growth initiatives.

Qube is continuing to work with MIC in relation to its requirements for the transaction with Aurizon and to achieve financial close on the Moorebank project with close expected to occur by late August 2016. The transaction with Aurizon is planned to complete around the same time as financial close.

Qube’s Managing Director Maurice James said:

 “We are delighted to be able to secure full ownership and control over such an important project for Qube. We believe it will enhance the deliverability of the project and maximise flexibility for Qube in terms of funding and partnering options for warehouse development”.