LOGOS Property Group will pay Qube Holdings $1.65 billion for Moorebank Logistics Park, in Sydney’s west.
The deal buys the 243 hectare site and investment-holding Qube Moorebank Warehouse Trust.
It also includes a 34 per cent stake in the Land Trust, which retains leaseholds.
As part of the agreement, LOGOS will fund and deliver the balance of the estate including distribution centres under construction for Woolworths.
It will also pay for precinct infrastructure like roads.
Qube will be relieved of all ground rent obligations payable by the Land Trust and rail access charges, due to the Moorebank Intermodal Company owned Rail Trust, too.
The vendor will retain MLP’s intermodal rail terminal land and operations.
The listing has been mooted for some months however it was reported to be worth $2-$2.5b and include the train infrastructure.
Charter Hall, ESR, Goodman and Dexus in partnership with KKR, were other suitors.
Moorebank is 27 kilometres from the city.
The LOGOS deal requires Foreign Investment Review Board approval (story continues below).
The biggest Australian property sale agreed last year, for half of Sydney’s Grosvenor Place office, was worth $925m.
That seller, Dexus, in 2019 paid $1.47b for a collection of adjoining Melbourne CBD assets – that year’s priciest single transaction.
Qube first half FY21 results
Qube outgoing managing director Maurice James today said the group’s first half FY21 performance was strong in the face of unprecedented challenges.
Last July it sold Charter Hall a 30.6ha Minto site for $207m – bringing term proceeds to c$1.86b before tax, transaction costs and other adjustments.
“The proposed [LOGOS] 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 long-term growth in container volumes…through terminal and logistics activities,” according to the executive.
“The transaction de-risks delivering the MLP development and warehouse leasing and significantly reduces Qube’s ongoing capex requirements,” he added.
Post settlement, the manager said it plans to review its capital structure; it will use proceeds to lower debt and buy more opportunities.
It added the board agreed to pay back $16.8m received in JobKeeper subsidies.
Qube is also proposing an intermodal facility at Beveridge, a largely undeveloped suburb 42 km north of Melbourne.