NSW Gov't leases two Australian ports to NSW Consortium
The NSW Government has successfully leased Port Botany and Port Kembla, delivering an outstanding result for the people of NSW. Following a six-month competitive bidding process, the 99-year lease of State-owned port assets Port Botany and Port Kembla has been awarded to the NSW Ports Consortium for $5.07 billion, with net proceeds of around $4 billion to be invested in the NSW Government’s infrastructure fund – Restart NSW, NSW Treasurer Mike Baird press release said.
“This is an outstanding result for the people of NSW, which has exceeded our expectations,” said Mr Baird.
“It is the largest ever NSW government transaction, in terms of net proceeds. The transaction has delivered an outstanding financial return for the state, including over $4.31 billion from the Port Botany transaction package and A$760 million from the Port Kembla transaction package," Mr Baird said.
Net proceeds from the two leases will be invested in the Government’s infrastructure fund, Restart NSW, with 30 per cent of funds reserved for project in regional areas and a further $100 million dedicated for infrastructure projects in the Illawarra.
Mr Baird said the transaction attracted a strong field of bidders from Australia and around the world.
NSW Ports Consortium comprises Industry Funds Management (“IFM”), Australian Super, QSuper and Tawreed Investments Limited, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (“ADIA”). QSuper’s investment in Port Botany and Port Kembla will be managed by Global Infrastructure Partners (“GIP”).
The transaction is expected to close on 31 May 2013.
