Australian logistics and infrastructure company Qube (ASX: QUB) has entered into an agreement to sell 100 per cent of its interest in the warehousing and property components of the Moorebank Logistics Park (MPL) in Sydney for $1.67 billion.
The transaction will see Sydney-based LOGOS Property Group take ownership of the properties which includes warehouses, freehold land, and a 34 per cent interest in the Land Trust (a leasehold interest in MLP land).
"We are delighted to announce Qube's entry into a binding sale agreement with the LOGOS consortium, who is an ideal partner for the Moorebank project as they recognise the high quality and significant long-term strategic value of MLP," says Qube managing director Paul Digney.
"We believe that the transaction with LOGOS consortium allows Qube to realise a strong value for the MLP Property Assets, de-risks delivering the leasing and development of future warehouses and significantly reduces Qube's ongoing capex requirements.
"The LOGOS consortium's arrival at Moorebank will also underpin the Commonwealth's investment in this nation building project. We consider this very much a win win for Qube, LOGOS and our partners, the Commonwealth and Moorebank Intermodal Company (MIC)."
Transaction completion is expected in the fourth quarter of this calendar year and is subject to approval from the Foreign Investment Review Board and MIC.
However, a key issue requiring resolution with MIC is a dispute regarding the date for completion of a train terminal at MPL.
Qube says MIC has given notice that in its view an 'event for default' has occurred as QUB failed to complete the terminal by March 2021.
"To resolve the dispute, Qube is in active discussions with MIC to agree a plan to complete Stage 1 of the Interstate Terminal by an agreed date," says QUB.
"This is expected to be resolved as part of the overall agreement to secure MIC's consent to the LOGOS transaction."
Shares in QUB are down 0.95 per cent to $3.14 per share at 3.25pm AEST.
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