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).
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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.
