The New South Wales Government has announced the successful leasing of Port Botany and Port Kembla to the NSW Ports Consortium.

The 99-year lease will see the Government net $5.07 billion, with proceeds to be invested in the NSW Government’s Restart NSW infrastructure fund.

State Treasurer, Mike Baird, hailed the ‘outstanding result’, saying it exceeded the Government’s expectations.

“It is the largest ever NSW government transaction, in terms of net proceeds,” Mr Baird said.

The deals will see $4.31 billion paid for the Port Botany package, while a further $760 million will be paid for the Port Kembla package.

Net proceeds from the two leases will be invested in the Government’s infrastructure fund, Restart NSW, with 30 per cent of funds reserved for projects in regional areas and a further $100 million dedicated for infrastructure projects in the Illawarra.

“There are now vital funds for the delivery of WestConnex, Bridges for the Bush, the Pacific Highway and the Princes Highway. The Government has now funded its commitment to WestConnex and there is $100m for spending on new infrastructure projects in the Illawarra region,” Mr Baird said.

NSW Ports Consortium comprises Industry Funds Management (“IFM”), Australian Super,

QSuper and Tawreed Investments Limited, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (“ADIA”). QSuper’s investment in Port Botany and Port Kembla will be managed by Global Infrastructure Partners (“GIP”).

The transaction is expected to close on 31 May 2013.