Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UPDATE 1-Australia funds lead bids for $4.1 bln Port of Melbourne sale -sources

Published 2016-04-18, 03:00 a/m
© Reuters.  UPDATE 1-Australia funds lead bids for $4.1 bln Port of Melbourne sale -sources
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* Hastings, Macquarie, QIC lead 3 global consortia
* Victoria state plans to complete sale by end-2016
* Part of privatisations to cut debt, upgrade infrastructure
* Strong interest expected - Victoria treasurer spokesman

(Adds industry context, comment from Victoria state)
By Swati Pandey
SYDNEY, April 18 (Reuters) - Three consortia of Australian
and international funds have submitted bids for a 50-year lease
of the Port of Melbourne, Australia's biggest shipping container
terminal, people familiar with the matter said on Monday.
The state government of Victoria aims to raise at least
A$5.3 billion ($4.1 billion) before the end of 2016, as part of
a broader Australian government privatisation programme to help
cut debt and upgrade the country's infrastructure.
Australian bank Macquarie Group 's MQG.AX Macquarie
Infrastructure and Real Assets fund has teamed up with domestic
infrastructure fund IFM Investors and Dutch pension fund APG in
one of the bidding groups, the people said, declining to be
identified because the matter was confidential.
Another joint bid was submitted by Australian fund QIC and
Canada's Borealis Infrastructure Trust, the people said. A third
consortium consisted of Australian fund Hastings with Kuwait's
Wren House, they said.
QIC, Hastings, IFM and Macquarie all declined to comment.
Borealis, APG and Wren House didn't immediately respond to
requests for comment outside their normal business hours.
A spokesman for the Victorian state treasurer said, "We
expect strong market interest with Port of Melbourne the last
major port in Australia (up for sale)."
Morgan Stanley (NYSE:MS) and Flagstaff Partners are acting as advisors
to the Victorian government on the sale.
While the Australian government has faced questions over its
handling of Chinese government-linked buyouts in other
infrastructure sales, the Port of Melbourne deal didn't
attracted interest from Chinese players, one of the people
familiar with the matter said.
In October last year, the A$506 million privatisation of
Port of Darwin to China-owned Landbridge earned rebukes from
opposition politicians, and even U.S. lawmakers, who warned the
deal could threaten national security.
Meanwhile, the state of New South Wales said last month it
received "strong" indicative bids from Chinese investors for an
electricity distributor it has put on the block. Last November
it sold another power network to a global consortium led by
Hastings for A$10.3 billion. = 1.3036 Australian dollars)

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