Transurban to buy Cross City Tunnel

Preferred bidder enters agreement to acquire tunnel, reduce CCT's debt.

Transurban Group (TCL) has announced it has entered into an agreement to acquire Sydney's troubled Cross City Tunnel for approximately $475 million.

The news follows the announcement last month that toll road owner Transurban was the preferred bidder for the business.

The tunnel was placed in receivership in September 2013 in the wake of a legal dispute with the NSW government over stamp duty.

Its vendors have agreed to apply the purchase price proceeds, payable upon closing, to reduce the senior secured debt of the Cross City Tunnel Group that was earlier acquired by Transurban.

After buying all of the toll road's senior debt, Transurban has now struck an agreement with the tunnel's receivers and managers to take control of the road.

Completion is expected before June 30 and is subject to closing conditions.

The 2.1 kilometre tunnel connects the west side of Sydney's CBD to Rushcutters Bay in the east, and cost $1 billion to build.