09/05/2019 - 15:31

TAB, Landgate sales moving

09/05/2019 - 15:31

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WA BUDGET: There are at least two parties interested in buying the TAB, with the state government committing to put part of the money raised towards replacing King Edward Memorial Hospital.

TAB, Landgate sales moving
The state government is racing to get a sale of the TAB finalised.

There are at least two parties interested in buying the TAB, with the state government committing to put part of the money raised towards replacing King Edward Memorial Hospital.

Business News understands at least one other party, aside from Melbourne-based giant Tabcorp, is keen to pursue the government owned betting agency.

A bill authorising the sale will be put to parliament before the winter recess, and Treasurer Ben Wyatt urged a swift passage of legislation to provide certainty for the racing industry.

A sale would be expected to raise between $250 million and $500 million, Business News understands.

Part of the cash raised from the sale will establish an infrastructure fund for the racing industry.

But the remainder will go towards a new women’s hospital to be co-located at the Queen Elizabeth II medical centre in Nedlands.

That will replace the existing King Edward Memorial Hospital in Subiaco, which opened in 1916.

It comes as revenue for Racing and Wagering Western Australia, the TAB's parent entity, has remained reasonably stagnant for the past five years.

The margin on turnover, a key performance metric, rose from $315 million in the year to June 2013 to be $322 million in the 2018 financial year.

Landgate

The partial privatisation of Landgate also continues.

Expressions of interest have been completed, although it has not clear how many were received.

A lease of the state’s land registry would be expected to raise about $2 billion, with roughly $600 million to be allocated to the state’s obligations through the National Redress Scheme for child sex abuse survivors.

Mr Wyatt told parliament today that the sale was on track.

“The process has now moved into the second stage, where shortlisted respondents have been asked to provide indicative proposals,” he said.

“Following evaluations of these, the state will seek binding proposals and we expect to announce the successful respondent before the end of 2019.”

Landgate itself will remain under government ownership and continue to control property valuation, location information and land titling functions that have not been automated.

Investec is acting as leader adviser for the Landgate deal.

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