Member Article

AMP Capital buy 49% stake in Newcastle Airport

Australian firm, AMP Capital, has acquired a 49% stake in Newcastle Airport after a battle against French company Antin and the private equity firm 3i.

South Tyneside Council and six other local authorities, operating as LA7, will retain a 51% share of the airport group, after a deal rumoured to be worth £150m was made.

AMP Capital’s flagship fund the Strategic Infrastructure Trust of Europe (SITE) secured its interest in the group from owners Copenhagen Airports.

Professional services firm KPMG advised on the deal, and David Elliot, a partner at the firm, commented on the transaction.

He said: “The recruitment of AMP Capital as a new investor is a real vote of confidence in the airport and the region.

“The announcement of this refinancing and sale reflects the commitment of the local authorities behind the airport to securing it a stable future and also their belief in its role in supporting economic growth.

“It is no surprise that it’s a transaction which KPMG is delighted to have been involved in.”

AMP Capital’s Managing Director for Europe, Boe Pahari said: “Newcastle Airport is the major airport serving the North-East of England and the Newcastle area.

“The airport already has the necessary infrastructure to further develop its commercial business and for meeting future demand for traffic growth.

“Newcastle Airport will be a source of stable and growing cash flows for SITE’s investors. It will also bring significant diversification to SITE’s existing portfolio of assets”

Newcastle Airport sees 4.4m passengers come through its doors every year, and the deal with AMP Capital is expected to complete within the next three weeks.

This was posted in Bdaily's Members' News section by Miranda Dobson .