Logistics firm Qube is launching a $350 million capital raising to fund development of the Sydney facility that will handle goods from one of Australia's busiest ports.
The ASX-listed company will use $80 million to pay for warehouse construction at the Moorebank Logistics Park in south west Sydney, and the balance is to be allocated for other investment and future growth.
"Qube is pleased to have achieved a further important milestone, with the development of the first new warehousing at Moorebank bringing us a step closer to realising the substantial benefits that the Moorebank project will deliver for customers, suppliers, and the entire east coast freight and logistics chain," Qube managing director Maurice James said in a statement.
Qube began work this month on the logistics park, which will be linked by rail to Port Botany and boast 850,000 square metres of warehouse space when completed, and is in talks with potential tenants.
Construction on a warehouse for the first tenant and an initial warehouse facility for Qube's own logistics business is expected to begin in early 2018.
Qube expects total capital expenditure in the first five years of the project to total $400 million.
The fully underwritten equity raising announced on Wednesday comprises a $228 million one for 15 entitlement offer at $2.35 per share, and a $122 million institutional placement priced between $2.40 and $2.45.
Qube shares were valued at $2.64 prior to being placed in a trading halt for the raising.
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