Brisbane Airtrain to be sold to UK pension fund

[Mal]

Airtrain set for sale to British pension fund for $109m | Latest Business & Australian Stock market News | The Courier-Mail

BRISBANE'S Airtrain, which now ferries nearly 1.8 million passengers annually between the airport and the CBD, has been slated for sale to a British pension fund for $109 million cash.

The train, which is owned by a group of institutional and private investors, has been acquired by a wholly owned subsidiary of Universities Superannuation Scheme Limited (USS), a UK fund which has $53 billion in assets under management.

Don't know whether this is good or bad. Personally I would have preferred for the Airtrain to go into Bankruptcy, which would trigger a clause which allowed the Queensland Government to take over the line.

 

[markis10]

Sold for half of what it cost to build, and still has 20 odd years of value left, not sure it was a great investment, bankruptcy was not an issue since they have been making a good profit since 2008.

 

[Mal]

bankruptcy was not an issue since they have been making a good profit since 2008.

Actually, if you look into the history, it came close ... Luckily (for them), they were able to restructure and prevent it happening, but many $ were wiped from the balance sheets.

 

[AdMEL]

Sold for half of what it cost to build, and still has 20 odd years of value left, not sure it was a great investment, bankruptcy was not an issue since they have been making a good profit since 2008.

Actually, if you look into the history, it came close ... Luckily (for them), they were able to restructure and prevent it happening, but many $ were wiped from the balance sheets.

Brisbane's Airtrain is a very good example of why we will never see an airport rail link in Melbourne. No government or PPP or private enterprise will want to build another rail that will be worth half as much as it cost to build! Of course, there are other reasons too .. Too many vocal vested interests in not seeing a rail link built .. Taxi industry and sky bus to name two.

Disclaimer: I have never used the Brisbane Airtrain but I have lived in Brisbane for a couple of years long before it was built.