REPORT: Morgan Stanley Has Been Appointed To Sell The Port Of Melbourne In What Could Be A $6 Billion Deal

An aerial view of Port Melbourne at sunset. Photo: Sean Garnsworthy / Getty Images.

There are reports investment bank Morgan Stanley and corporate advisor Flagstaff Partners have been directed to sell the Port of Melbourne.

According to the AFR a number of firms pitched the Victorian Government to secure a position to run point on the deal about two weeks ago.

The state government has engaged the two companies to discuss fees and conditions of the deal and is expected to make an announcement today, AFR reported.

It is expected the Port will sell for more than $6 billion when it is listed for sale in early 2015.

Earlier this year the New South Wales state government leased the Port of Newcastle to Hastings Fund Management and China Merchants for 98 years in a $1.754 billion deal which is estimated to be 27 times earnings. More on that here.

In 2013 the NSW state government also leased out both Port Botany and Port Kembla for 99 years to NSW Ports – a consortium led by Industry Funds Management – for $5.07 billion.

In the 2014 Federal Budget there were provisions for incentives for state governments to recycle infrastructure assets. Where public assets are sold and the proceeds reinvested in federally approved new infrastructure projects, such as roads, the state will be given 15% of the cost of the project from the federal government.

There’s more here.

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