Deutsche Bank unit to buy US terminal
A government agency has given the go-ahead for the sale of Maher Terminals LLC in New Jersey, US to a Deutsche Bank unit.
This is the third time this year that the Port Authority of New York and New Jersey (PANYNJ) has approved a lease transfer for one of the marine port terminals it operates.
“What we're really talking about here is a trend towards private equity owners taking over terminal operations,” said PANYNJ spokesperson Steven Sigmund.
The terms of the sales of the terminals always include an agreement by the new operator to commit millions of dollars to the continual upgrading and improvement of port facilities.
The three transactions alone have committed almost $200 million in capital investment guarantees from the new owners.
In the latest deal, Maher sold its terminal in Elizabeth to Deutsche Asset Management's RREEF Infrastructure, which agreed to invest a minimum of $114 million on capital improvements to the facility.
RREEF will take over the remaining 23 years on the terminal's lease with the port authority.
According to Sigmund “the same people are going to be operating the terminal, which is important to us because of their experience and prior security clearance.”
Deutsche Bank said that the terminal would keep its name and current management team, with M. Brian Maher staying on as chairman and chief executive.
One of the previous deals involved the Port Newark Container Terminal, one of six terminals caught up in controversy last year when the Bush administration approved UAE-based DP World's ownership of terminals at major US ports through its acquisition of global port operator P&O Ports.
PANYNJ in February reached an agreement to allow AIG Global Investments Group to acquire the Port Newark Container Terminal from DP World, which also relinquished and sold its five other US terminals to AIG.
Meanwhile, PANYNJ in May completed the sale of Orient Overseas (International) Ltd.'s Howland Hook Marine Terminal on Staten Island to the Ontario Teachers Pension Plan investment entity.
This is the third time this year that the Port Authority of New York and New Jersey (PANYNJ) has approved a lease transfer for one of the marine port terminals it operates.
“What we're really talking about here is a trend towards private equity owners taking over terminal operations,” said PANYNJ spokesperson Steven Sigmund.
The terms of the sales of the terminals always include an agreement by the new operator to commit millions of dollars to the continual upgrading and improvement of port facilities.
The three transactions alone have committed almost $200 million in capital investment guarantees from the new owners.
In the latest deal, Maher sold its terminal in Elizabeth to Deutsche Asset Management's RREEF Infrastructure, which agreed to invest a minimum of $114 million on capital improvements to the facility.
RREEF will take over the remaining 23 years on the terminal's lease with the port authority.
According to Sigmund “the same people are going to be operating the terminal, which is important to us because of their experience and prior security clearance.”
Deutsche Bank said that the terminal would keep its name and current management team, with M. Brian Maher staying on as chairman and chief executive.
One of the previous deals involved the Port Newark Container Terminal, one of six terminals caught up in controversy last year when the Bush administration approved UAE-based DP World's ownership of terminals at major US ports through its acquisition of global port operator P&O Ports.
PANYNJ in February reached an agreement to allow AIG Global Investments Group to acquire the Port Newark Container Terminal from DP World, which also relinquished and sold its five other US terminals to AIG.
Meanwhile, PANYNJ in May completed the sale of Orient Overseas (International) Ltd.'s Howland Hook Marine Terminal on Staten Island to the Ontario Teachers Pension Plan investment entity.