Port of Brisbane 99-yr lease sells for $2.1bn

by Jeni Bone on 13 Nov 2010 A group led by Abu Dhabi Investment Authority and infrastructure investment fund Global Infrastructure Partners has agreed to buy the Port of Brisbane for $2.1bn.

Q Port Holdings Consortium, which also includes investment group Industry Funds Management, agreed to buy a 99-year lease, Queensland Treasurer Andrew Fraser said in a statement.

'The consortium has interests in port terminals across eight countries and it has the right credentials for owning and operating the port,' Fraser said in the statement.

The consortium’s major stakeholders are Global Infrastructure Partners - jointly owned by Credit Suisse and GE - Industry Funds Management and QIC Limited, as well as entities controlled by the Abu Dhabi Investment Authority.

Each of the three partners in the consortium has a 27 per cent interest, with Tawreed Investments, an ADIA subsidiary, holding a minority stake.

Mr Fraser said: 'By achieving this value-for-money transaction, taxpayers will also avoid expected infrastructure expansions at the port worth up to $1 billion.'

Queensland’s government flagged the sale of the Port of Brisbane Corp in June 2009 as part of a broader plan to sell off assets to reduce state debt and provide money for public projects. The Port of Brisbane is a general purpose facility that exports a variety of goods including oil, grain, motor vehicles, chemicals and fertilisers.

The Queensland government, through the Port of Brisbane Corp, will act as a landlord to the winning consortium.

QPH brings substantial industry and operating expertise and financial capacity to ensure the Port of Brisbane continues to play its pivotal role in the Queensland economy. Consortium members have investments in port assets across eight countries through direct interests in International Trade Logistics (Argentina), Great Yarmouth Port Company (UK), and Grup Maritim TCB (the leading Spain based container terminal operator).

QPH consortium members have a strong track record of effective and responsible stewardship over important infrastructure assets in Australia such as Brisbane Airport, Westlink M7 toll road in Sydney, and Southern Cross Station in Melbourne. Majority ownership of QPH is through Australian superannuation funds managed by IFM and QIC. Through these funds, more than a million Queenslanders, in addition to other Australian superannuation fund members, will become investors in the Port of Brisbane.

QPH brings a long-term perspective and a robust financial structure benefitting from the financial strength of the consortium members. QPH is also backed by financing from eight leading Australian and international banks with specialist infrastructure lending expertise.

QPH is focussed on continuing to provide world class port facilities that support trade flows for Port users, as well as maintaining strong relationships with stakeholders including customers, employees, Governmental bodies and the local community.

The 99-year lease for the Port of Brisbane is expected to be transferred to QPH on or about the 30th of November 2010. The consortium will work closely with the Queensland Government and the Port of Brisbane to complete the transaction and ensure a smooth transition from public to private management.

QPH is committed to the long-term development of the Port of Brisbane and retaining environmental management and protection as one of its priorities.

More at www.portbris.com.au