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DP World Australia inks lease deals with port

MELBOURNE, August 3, 2015

DP World Australia, a unit of Dubai-based marine operator DP World and the Port of Melbourne Corporation (PoMC) have signed new lease arrangements at DP World Australia’s West Swanson Terminal.

DP World Australia managing director and CEO Paul Scurrah said the new lease arrangements will provide long term certainty to port users, including modern lease terms and acceptable rent levels to both parties.

“Everyone wins — our customers, service providers and the Victorian freight industry will benefit from long-term lease and price certainty, which comes with DP World Australia's commitment to operating in the Port of Melbourne,” Scurrah said.

PoMC CEO, Nick Easy, said: “The new lease will grant fifty-year tenure to DP World Australia to 2065 under a lease with key performance indicators, efficiency incentives, and most importantly, known fixed escalations for the next 13 years.”

The agreed rent includes incremental rent increases over the course of the fifty year tenure commencing with CPI increments in 2015 and 2016 to nominally $45 in 2023 with agreed escalations to 2028.

The first market rent review will then take place in 2028 and occur every five years thereafter.

“With a longer period between rental reviews, the new lease takes uncertainty out of the container market,” Scurrah said.

“The longevity of the lease tenure represents a strong vote of confidence in the Port of Melbourne by an important tenant and ensures it remains competitive with respect to estimated rent costs at other Australian ports,” Easy said. – TradeArabia News Service




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