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Allens renewing QLD with coal deal

Allens renewing QLD with coal deal

Allens Arthur Robinson has advised the State of Queensland on the divestment of the X50 Abbot PointCoal Terminal, Queensland's northern-most coal terminal, which is the final part of the state's…

Allens Arthur Robinson has advised the State of Queensland on the divestment of the X50 Abbot Point

Coal Terminal, Queensland's northern-most coal terminal, which is the final part of the state's Renewing Queensland Plan.

Proceeds from the divestment will be directed towards Queensland's natural disaster recovery.

The deal involves a 99-year lease of the X50 Abbot Point Coal Terminal to Mundra Port Pty Ltd for $1.829 billion.

Mundra Port Pty Ltd is the Australian subsidiary of Mundra Port and Special Economic Zone Ltd, which developed, and now manages, the largest privately-developed port in India, and is part of Indian-based Adani Group.

As part of the new lease, the state will retain ownership of the port land and fixed infrastructure, including the jetty and wharf.

The Allens team was led by partners John Greig and Chelsey Drake.

Drake said that the transaction delivered proceeds well above initial expectations of $1.5 billion.

"The demand for assets like this is evidenced by the higher than expected price," Drake said.

"It's also evidenced by the continued work on the separate development of Terminals 2 and 3 by preferred proponents, and the state's call for proponents to express interest in developing further Terminals 4 to 7 at the Port of Abbot Point."

Blake Dawson acted for Mundra Port Pty Ltd.

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