GeelongPort stake sold for about $1.2bn
GEELONGPORT has been sold to Spirit Super and Palisade Investment Partners in a deal touted to be worth $1.2bn.
The sale sees Spirit Super gain 51 per cent in GeelongPort, the operator of the city’s port.
State Super and Brookfield offloaded their interest after a months-long sale process through Barrenjoey Capital Partners and Macquarie Capital.
Final bids on the deal were due on December 10, with the transaction due to close in the first quarter of 2022.
“The Spirit Super and Palisade consortium is considered a responsible and capable custodian of the asset, with a longterm investment horizon, ports management expertise, and local knowledge to support its ownership of the Port of Geelong and contribute to the broader economic development of the Geelong region,” State Super and Brookfield said.
The deal nets Sydney-based Palisade another stake in a Victorian port, after snapping up the remaining 40 per cent shareholding in the Port of Portland in the state’s west.
That 2018 deal saw Palisade shell out $60m, at 11 times earnings.
State Super chief executive John Livanas said he was pleased with the level of interest shown by bidders in their “approach to valuation”.
“The agreement reached represents an excellent outcome for our members,” he said.
Brookfield managing director of infrastructure Ray Neill said GeelongPort had proven a “terrific asset” for investors after its purchase in 2016.
“During our period of ownership, GeelongPort has materially grown earnings and diversified trade mix through the execution of new contracts and extension of existing contracts,” he said.
“GeelongPort will continue to play a key role as a critical infrastructure asset within Victoria for decades to come.”
Spirit Super chief investment officer Ross Barry said the deal to secure GeelongPort was “a compelling, core infrastructure opportunity”.