The Infrastructure Fund, Australian Retirement Trust and superannuation fund State Super have sold Queensland Airports Ltd. to private equity giant KKR & Co. and Skip Capital, the family office of software company Atlassian Corp. Co-Founder Scott Farquhar.
Queensland Airports comprises four airports in the Australian state: Gold Coast, Longreach, Mount Isa and Townsville. It is currently majority owned by the Infrastructure Fund (managed by Macquarie Asset Management), ART and State Super, which together own 74.25% of the company.
The group has agreed to sell its stake to KKR and the Skip Essential Infrastructure Fund, a fund set up by Skip Capital and overseen by Farquhar’s wife, Skip Capital Chief Executive Kim Jackson. The remaining 24.62% of the entity will continue to be owned by Perron Investments Pty. Ltd., the investment firm of the late Australian businessman and philanthropist Stanley Perron.
Combined, the airports see nearly 66,700 annual aircraft movements across more than 40 domestic and international routes. This year, they are expected to service more than 8.5 million travelers.
KKR, which made the investment through its Asia Pacific Infrastructure Investors II Fund, sees transportation as core to its infrastructure strategy in Australia, alongside energy, utilities and telecommunications.
“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,” KKR Head of Australia and New Zealand Infrastructure Andrew Jennings said in a statement. “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.”
Financial terms of the transaction were not disclosed. It is expected to close later this year.
“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 travelers, staff and the communities they serve in Queensland and northern New South Wales,” Macquarie Asset Management Senior Managing Director Amanda McMillan said in a statement. “This is an excellent example of private capital supporting airports to meet growing capacity needs and traveler expectations by investing in upgraded and expanded infrastructure that will serve these growing regions of Australia for years to come.”
Michael Weaver, ART’s head of global real assets, said the timing of the sale supports the fund’s goal of delivering the best possible outcomes for members.
“This process has formed part of our broader strategy to manage our portfolio, and we’re pleased with the outcome,” Weaver said in a statement. “Our capital helped support this investment to grow over many years, but we now look forward to new investors coming in and managing these assets as they enter a new phase.”
Both ART and the Infrastructure Fund are also reportedly looking to offload their stakes in Perth Airport. ART owns 1.95% of the airport, while the Infrastructure Fund owns 7.19%.
State Super CEO John Livanas said the fund is proud to have been a part of the airports’ growth.
“We are also proud that our members have been owners of Longreach Airport, an important site for the development of Australian aviation,” he said in a statement. “This transaction captures the value we have created for our members and is an outstanding outcome for our funds. We look forward to seeing the future success of all the airports in the QAL portfolio.”
This article first appeared in our sister publication, Financial Standard, which, like CIO, is owned by ISS STOXX.
Tags: Amanda McMillan, Australian Retirement Trust, Family Offices, John Livanas, KKR, Macquarie Asset Management, Michael Weaver, State Super, The Infrastructure Fund
