Qube has embarked on a $350 million equity raising to fund its Moorebank intermodal terminal project, and other growth options.
The logistics group, which last year acquired full control over Moorebank via a $98.9 million buyout of joint venture partner Aurizon’s 33% share in the project, will look to raise $80 million for construction of new warehousing at Moorebank to begin early next year, and $70 million for growth capex already committed or approved this year.
The remaining $200 million will be set aside to improve the liquidity of Qube’s balance sheet, and better position the firm “to pursue other identified strategic growth opportunities”.
Qube managing director Maurice James said the $80 million for new warehousing would accommodate Moorebank’s first tenant, and would provide an initial warehouse facility for Qube Logistics – the company’s intermodal freight division.
“We are delighted with the initial reaction of potential tenants to the transformational proposition that is provided by the Moorebank facility,” James said.
“Qube is pleased to have achieved a further important milestone, with the development of the first new warehousing at Moorebank bringing us a step closer to realising the substantial benefits that the Moorebank project will deliver for customers, suppliers, and the entire East Coast freight and logistics chain.”
Along with Moorebank spending, Qube has in FY17 committed around $70 million to buy new locomotives, warehousing at Altona, facility upgrades at Minto for an automotive logistics hub, equipment for new contracts and South Australian port facilities.