AUSTRALIA. The Infrastructure Fund, managed by Macquarie Asset Management, State Super and Australian Retirement Trust have agreed the sale of their combined 74.25% interest in Queensland Airports Limited (QAL) to a consortium of global investment firm KKR and the Skip Essential Infrastructure Fund.
The transaction is expected to close in late 2024, subject to customary conditions including regulatory approvals.
Queensland Airports’ portfolio includes Gold Coast, Townsville, Mount Isa and Longreach airports. These service travellers across more than 40 domestic and international routes.
The shareholder group said it had made big investments to upgrade and expand the capacity and customer experience at QAL airports “which contributed to a competitive process and strong outcome for their investors and members, and the local communities served by these important transportation assets”.
At Gold Coast Airport, over the past five years more than A$500 million has been invested in expansion and improvement initiatives, including the southern terminal expansion in 2022, to double its footprint, and the addition of retail outlets, six new gates, new border control facilities and four aerobridges. It is now 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, which is currently in the approval phase, will add a retail village, health and wellness hub, and conference and tech centre.
Townsville Airport recently delivered its busiest year with over 1.7 million passengers travelling between July 2023 and June 2024.
KKR Managing Director & Head of Australia and New Zealand (ANZ) Infrastructure Andrew Jennings said, “Our investment in Queensland Airports is a unique opportunity to acquire a high-quality asset that provides critical services in a resilient market with strong macro tailwinds. Queensland Airports plays an important role in connecting Queensland communities to the rest of Australia and beyond. We look forward to collaborating with the Skip Essential Infrastructure Fund, Perron Group and the management team to drive growth initiatives to better serve passengers from Australia and abroad.”
Skip Capital CEO and founder Kim Jackson said: “The Skip Essential Infrastructure Fund is proud to back the Gold Coast, Townsville, Longreach and Mt Isa airports. Alongside delivering critical transport into one of Australia’s highest growth corridors of the Gold Coast, we are excited about our plans to lift the airport’s offering for residents and tourists, and drive energy innovation across the group.”
QAL CEO Amelia Evans said: “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.
“We are now excited to embark on a new chapter with the Skip Essential Infrastructure Fund and KKR and to work with them to grow our airports in the years ahead.”
Macquarie Capital and Barrenjoey acted as joint financial advisers to the shareholder group. Leading airport commercial consultancy The Mercurius Group was an advisor to KKR/Skip Capital. ✈
