The firm is set to launch a $350M capital raising for the funding of their planned Sydney facility, which the company aims to handle goods from one the busiest ports in the country.
The ASX-listed company has already revealed some information regarding the funding, stating that only $80M of the total funding would go to the construction of the new Moorebank Logistics Park warehouse, located in Southwest Sydney, with the remaining $270M set to be used for other investments related to the property and for future growth of the company.
Managing Director for Qube, Maurice James, has already made a statement, expressing the company’s joy in having accomplished such a notable milestone. Qube considers the new warehousing as an important step in realising their plans for the Moorebank area. The new warehouse is the first of many, according to Qube, all part of the company’s move into bringing the benefits of the Moorebank project not only to its customers and suppliers, but also, the company hopes, to the freight and logistics chain of the entire Australian East Coast. The importance of Sydney port may mean that this project will affect more than the East Coast, having ramification across the country and affecting even logistics in Perth, but for the time being, Qubeis aimed at the eastern half of the country.
The firm began to work on the logistics park sometime early May, which is designed to be linked via railroad to Port Botany, and will hold 850,000m2 when construction completes. As early as right now though, there have been negotiations between Qube and the warehouse’s potential first tenants.
Construction has yet to begin, but is expected to, if the schedule is followed, sometime early 2018.
Qube has given estimates on costs, saying that they expect that the first five years of the project will cost them approximately $400 M.
The equity raising, fully underwritten, was announced on the 31st of May, and compromises a one for 15 entitlement offer at $2.35 per share totalling at $228 M, and an institutional placement at around $2.40 and $2.45.
Prior to being put in a trading halt in preparation for the raising, Qube’s shares were valued at $2.64 each.