QIC acquires bankrupt CLEM7 tunnel in Brisbane

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QIC acquires bankrupt CLEM7 tunnel in Brisbane

Brisbane's Clem7 tunnel has been sold to Queensland Motorways for A$618 million - a fraction of the $3 billion it cost to build. RiverCity Motorway, the previous owner of the tunnel, was placed in receivership in February 2011, less than a year after it was opened to motorists as the company failed to attract the number of motorists that were forecast.

The 6.8-kilometre tollway includes a 4.8-kilometre tunnel linking roads on each side of the Brisbane River.

The tollroad's receiver, KordaMentha, and advisers, Goldman Sachs, have selected Queensland Motorways ahead of three other consortiums.

Other bids came from:

Queensland Motorways, which is owned by the Queensland Investment Corporation (QIC), has also bought the tolling rights for the A$1.5 billion Legacy Way and A$308m Go Between bridge, both in Brisbane, and is expected to be a bidder for the Airport Motorway. It was seen as the logical buyer due to the potential synergies to achieve by having a network of roads in the same city.

The sale is expected to be completed within the next three months.

The sale comes as advisers to Royal Bank of Scotland seek buyers for Sydney's Cross City Tunnel, which collapsed into administration for a second time two weeks ago. Brisbane's Airport Motorway is also in receivership and likely to be put on the market next year.

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