Qube (ASX:QUB) share price jumps as Woolworths logistics park gets backing

The Qube Holdings Ltd (ASX: QUB) share price has climbed in early trade after announcing a key agreement to unlock value from its major asset.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Qube Holdings Ltd (ASX: QUB) share price has jumped 1.95% higher in early trade after providing an update on its Moorebank Logistics Park (MLP).

Share price jump represented by goldfish leaping from small fishbowl to larger bowl

Image source: Getty Images

What is the Moorebank Logistics Park?

The Moorebank Logistics Park or 'MLP' is a 243-hectare development in South Western Sydney. Once complete, the development is Australia's largest freight infrastructure project spearheaded by Qube.

Qube is partnering with Woolworths Group Ltd (ASX: WOW) on two new state-of-the-art facilities in the MPL. Woolworths is set to become a major tenant at the site in a deal worth $1 billion as the conglomerate pushes towards more automation.

Why is the Qube share price moving today?

The Qube share price has climbed higher in early trade following its latest update on monetising the MLP.

This follows an earlier announcement from Qube around unlocking some value from the high-quality assets. The MLP monetisation has now progressed into a period of exclusivity with Asia-Pacific logistics specialist, LOGOS Property Group.

The transaction is currently a non-binding indicative proposal from LOGOS, which has A$13.8 billion in assets under management.

Qube and LOGOS have now commenced "significant work" needed to agree and document the level of ownership and assets subject to monetisation.

Qube has said it will only proceed if it is able to realise appropriate value from its MLP investment in support of its strategic objectives and growth of the high-quality asset.

That has been enough for shareholders to buy the logistics share as the Qube share price has climbed nearly 2% higher this morning.

How have Qube shares performed this year?

The Qube share price closed at $2.56 per share yesterday, down 21.2% in 2020. That means the ASX logistics share has underperformed the S&P/ASX 200 Index (ASX: XJO) this year.

That's despite a boom in online retail and growing demand for warehousing and logistics services. Logistics have been disrupted by the border closures and trade disputes triggered by the coronavirus pandemic. 

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ASX Share Market News

Girl with painted hands.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX was back to the races this Tuesday.

Read more »

Blue % sign with white dollar signs.
ASX Share Market News

ASX 200 eyeing new record closing high as RBA keeps interest rates on hold. Now what?

Mortgage holders and ASX investors have received the interest rate pause they were hoping for.

Read more »

Red buy button on an Apple keyboard with a finger on it.
Broker Notes

3 ASX shares to buy as the market gathers pace: experts

Looking for investment inspiration in the rising market?

Read more »

A woman is excited as she reads the latest rumour on her phone.
ASX Share Market News

Why Core Lithium, Newmont and Life360 shares are turning heads on Tuesday

Newmont, Life360, and Core Lithium shares are making waves today. But why?

Read more »

Man and woman sitting at table with the man looking a bit puzzled at his laptop.
Broker Notes

Buy, hold, sell: APA Group, Amcor, Mineral Resources shares

Let's take a look at some new buy, hold, and sell calls from James Bills at Shaw and Partners.

Read more »

ASX 200 shares broker downgrade origami paper fortune teller with buy hold sell and dollar sign options
Broker Notes

Amcor shares have surged 30% since May. Buy, hold or sell?

Two leading analysts offer their forecasts for Amcor’s rebounding shares.

Read more »

The words short selling in red against a black background
ASX Share Market News

Why this expert is betting against 4DMedical and DroneShield shares

A leading expert believes DroneShield and 4DMedical shares have further to fall. But why?

Read more »

A happy young couple celebrate a win by jumping high above their new sofa.
Broker Notes

This ASX 200 stock is expected to rise 22% in the next 12 months – Expert

This stock is a rebound candidate.

Read more »