WASHINGTON: A fourth bidding party, understood to be China’s Zhejiang Port, has emerged in the tussle for Port of Melbourne. The state-owned-enterprise is close to CITIC-CLSA Capital Markets and is said to be working with the advisory firm on a Port ofMelbourne tilt. As revealed by Street Talk on Wednesday, bidders received an information memorandum for the 50-year Port of Melbourne lease and first round bids are due on June 14.
The intention is to wrap up the long-awaited auction in the fourth quarter. A $6 billion-plus price tag has been touted for the auction amid fierce competition for infrastructure assets, including ports. There are three other heavyweight consortiums bidding for the asset.
In one camp, Macquarie Group-owned MIRA is working with IFM Investors and Dutch asset manager APG, as revealed by Street Talk. Then there’s QIC Ltd, Canada’s Borealis Infrastructure and financial investor Global Infrastructure Partners, advised by Credit Suisse and Gresham. The third group comprises Hastings Funds Management, Kuwait-backed Wren House Infrastructure and Canadian asset manager Alberta Investment Management Corporation, tended to by UBS and RBC Capital Markets.
Port of Melbourne is the country’s largest container port. The state is offering a 50-year lease for the asset, in a long-awaited sale process that is now gathering steam. The previous state government booked the Port sale for 2016-17 figures at $5.3 billion.
Sources have said since taking office, now Victorian Treasurer Tim Pallas has increased that number, following an uptick in market conditions. However, Pallas refuses to say how much the government expects to receive or has calculated in its finances. In August, the state government announced a $200 rural fund after Premier Daniel Andrews said “we on the best advice believe the lease of the Port of Melbourne will provide revenue over and above what we had forecast and what had been booked [by the government in the budget]”.
Morgan Stanley and Flagstaff Partners are managing the sale for Victoria’s government. Elsewhere, infrastructure manager Whitehelm Capital is leading the cornerstone investment in a bond issue by Spanish toll road operator Aunor. Aunor is the driving force behind a 62km motorway under a 27-year concession which began in 1999. Whitehelm invested 33 million euros into the 54 million euro transaction. The bond matures in mid-2025 and was priced at 4.75 per cent.
