Property group Logos is believed to be offering a price for Qube’s Moorebank Logistics Park in Sydney that values the asset at between $2.5bn and $3bn — described by some in the market as a knockout price.
Qube has not disclosed the price Logos is offering for the real estate play, but confirmed on Friday that Logos had entered exclusive due diligence for the warehouse and land trust at the country’s largest intermodal facility.
It fended off competition from Dexus Property, Blackstone and Charter Hall.
It is understood all of the bidders offered a similar price for the right to collect rent on the properties, but when it came to the development land component, Logos priced its bid so that would develop the land at cost.
Other parties were said to have put forward offers for the asset at close to $2bn.
Logos, which is working with advisory firm Grant Samuel, has $13.8bn of assets under management.
Qube said the transaction was still at the status of a non-binding indicative proposal and remained subject to conditions, including the agreement of the precise details and scope of the monetisation structure, completion of due diligence and documentation.
Working on the sales process for Qube has been UBS.
While final details of the transaction are yet to be determined, most expected Qube to sell between 50 and 75 per cent of the logistics park’s land trust and warehouse trust, with Qube to retain the terminals trust.
The deal will enable Logos to develop land and collect the rent from existing tenants at Moorebank.
The Moorebank logistics park covers 243 hectares and is being developed on a precinct comprising land owned by the Commonwealth and adjacent to land owned by Qube.
Woolworths is a key tenant.
Elsewhere, the sales process for the David Jones properties in Sydney and Melbourne is believed to be moving closer to a conclusion.
Into the second round of the competition was understood to be Shaun Bonett’s Precision Group, Charter Hall, Victor Comino and Ashe Morgan.
It is understood one of the prospective buyers is expected to enter exclusive due diligence in the coming days.
In the final stage of the contest, run by investment bank UBS, some believe Ashe Morgan and Precision Group are shaping up as the two front runners, with Charter Hall potentially leaving the competition.
On offer is the sale and lease back of the David Jones store on Elizabeth Street in Sydney and its Melbourne store on Bourke Street.
Some say that the Elizabeth Street store will be sold first for between $400m and $500m.
Collectively, the two properties are thought to be worth about $700m, but the sale price hinges on the amount of rent to be paid by David Jones.
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