Barings consortium buys Moorabbin Airport
Barings has quietly agreed to buy Melbourne’s Moorabbin Airport precinct from Goodman Group – a deal valuing the asset at $1.5 billion.
The buyer leads a consortium including Aware Super, Rest and two Barings parents, Massachusetts Mutual Life Insurance Company and MS&AD, held through Japan’s Mitsui Sumitomo Insurance.
Goodman will retain an interest after settlement, expected mid-year; the deal needs Australian Competition and Consumer Commission permission given participants have other airport and industrial property interests.
The government has been reviewing the application since April.
The deal comes eight months since we reported Blackstone’s Crown Resorts sold the nearby 120 hectare Capital Golf Club to Lindsay Fox as an industrial play.
Long leasehold
The 294ha Moorabbin precinct, 28 kilometres south east of the CBD, contains industrial, office and large format retail components.
Kingston Central Plaza, DFO Moorabbin and Chifley Business Parks are some of the complexes built there.
Moorabbin Airport – based on aircraft movements Australia’s second busiest after Sydney Airport -and with flight training, charter and maintenance operations – operates under a 71 year commonwealth lease (continues below).
Goodman acquired the leasehold for $201.5m in 2011 from interests linked to founder Greg Goodman.
It is known as Moorabbin Airport Corporation.
CBRE brokered the off-market on sale.
If it proceeds, Barings will assume management and oversee future development.
“Barings has a strong track record with complex airport and industrial assets, highlighted by the success at Bankstown and Camden Airports in the Sydney area,” according to Shaun Hannah, Executive Director, Barings Real Estate Australia.
Jason Little, Goodman chief executive officer, added Goodman “has invested significantly in the airport operations and surrounding land to create a thriving precinct”.
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