This article is from the Australian Property Journal archive
GLOBAL investment firm KKR and the Skip Essential Infrastructure Fund have landed a near-75% share in the Queensland Airports Limited (QAL) portfolio, in a circa $3 billion deal that includes Gold Coast, Townsville, Mount Isa and Longreach airports.
The portfolio services travellers across more than 40 domestic and international routes, with nearly 66,700 annual aircraft movements.
Vendors of 74.25% stake, the Infrastructure Fund (TIF), managed by Macquarie Asset Management (MAM), State Super and Australian Retirement Trust (ART) had made significant investments to upgrade and expand the capacity and customer experience the airports.
More than $500 million had spent at Gold Coast Airport, including the southern terminal expansion in 2022, the addition of retail outlets, six new gates, new border control facilities and four aerobridges.
It is Australia’s sixth busiest airport with a record 5.6 million travellers using the airport in the past year.
The Gold Coast Airport Master Plan will add a retail village, health and wellness hub, and conference and tech centre.
Recent agreements signed with Qantas and Virgin Australia will further support passenger growth across existing and new routes, including new connections planned by Qantas to Hamilton and Dunedin, making Gold Coast Airport Australia’s most connected airport to New Zealand.
Townsville Airport recently delivered its busiest year on record with over 1.7 million passengers in FY24 following entryway and terminal redevelopment.
“QAL plays an essential role connecting Queensland and northern NSW to the rest of Australia and the world. This year we will welcome more than 8.5 million passengers through our four airports. We have an exciting future ahead including the proposed Gold Coast Airport Master Plan and the approved Townsville Airport Master Plan, which will both stimulate new growth and economic opportunities, as well as customer experience improvements,” said QAL CEO Amelia Evans.
Amanda McMillan, senior managing director at MAM and former CEO of AGS Airports, an asset within MAM’s portfolio in the United Kingdom, said: “We are proud to have worked closely with QAL management, on behalf of TIF’s investors, to invest in new facilities and expanded services at the airports, which has benefitted travellers, staff and the communities they serve in Queensland and northern NSW”.
State Super CEO John Livanas, said, “State Super has been the proud owner of many of Australia’s iconic assets, supporting Australia’s development and generating exceptional returns for our members.”
“Alongside our partners, we have been proud to have invested in expanding the operations and capabilities of the airports in this portfolio, with Gold Coast Airport becoming the sixth largest in Australia.
ART head of global real assets Michael Weaver, said, “As an institutional investor, we’re always looking for opportunities to deliver the best possible outcomes for our members, and the timing of this sale alongside other investors supports that goal.”
Macquarie Capital and Barrenjoey acted as joint financial advisers to the shareholder group.
Meanwhile, Australia’s largest superannuation fund, AustralianSuper – an underbidder for the QAL portfolio – has increased its ownership in Perth Airport. Already an owner of 5.25%, it has taken a 15% stake that was held by Morrison & Co’s Utilities Trust of Australia.
