Transurban considers Sydney tunnel buy

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Toll road owner Transurban is considering bidding for Sydney’s Cross City Tunnel, which has been placed in receivership for the second time.

Transurban has indicated it is looking into the possibility of buying the tunnel, which is currently in the hands of receivers KordaMentha.

“At face value I’d say it looks like an interesting opportunity,” a Transurban spokesman said on Friday.

The tunnel has been placed into receivership by CrossCity Motorway, which is owned by the Royal Bank of Scotland, EISER Infrastructure Partners and Leighton Contractors. They bought the toll road out of an earlier receivership in 2007.

KordaMentha partner Martin Madden last week said that despite the tunnel’s troubled financial history, he was confident of finding a buyer.

“The receivers are confident the tunnel is an attractive asset which will provide solid returns for the right buyer,” he said in a statement.

Transurban already owns or part-owns of number of major toll roads in Sydney – the M2, M5, M7 motorways, the Eastern Distributor and the Lane Cove Tunnel.