Global funds win Brisbane lease

An investment consortium has won the right to a 99-year lease to operate the Port of Brisbane.

The deal agreed with the Queensland Government was worth A$2.3bn (US$2.3bn) to the successful bidders Q Port Holdings, which brings together a number of stakeholders comprising Global Infrastructure Partners, Industry Funds Management and funds managed by QIC, and a minority stake held by Tawreed Investments, a wholly-owned subsidiary of the Abu Dhabi Investment Authority.

These are significant players in port and airport operations, and two of Australia’s largest superannuation fund managers. The bid price includes $2.1bn that goes to the Queensland state with Q Port Holdings also taking on the upgrade of a motorway link to the port at a cost of $200m.

From a state government perspective, the rationale has been to place the responsibility for the future development of the port into the hands of private enterprise, while avoiding the taxpayer having to fund future port developments estimated at up to $1bn.

State treasurer Andrew Fraser said the winning consortium was “a quality group of investors with the skill and balance sheet to ensure the future development of the port”. The consortium beat one other bidder for the 99-year lease.