Amsterdam Airport owner The Schiphol Group and France-based investor Vinci are believed to be lining up for Cairns airport owner North Queensland Airports Group, which is chasing a price of $3bn.
Global infrastructure investor Stonepeak may also be in the mix, say sources.
The understanding is that the process will be launched next month, and the first-round bids are due at the end of January in what will be a deal keeping investment bankers busy over the festive season when most typically take a break.
But northern hemisphere groups often work through December and January, which is the likely explanation for the timing of the process.
Global groups are drawn to the opportunity because, unlike other airport assets on offer where regulations stipulate that they cannot own more than 49 per cent, in this case they are allowed to own all of the airport business.
Vinci was in the mix early on for the recent sale process of Gold Coast airport owner Queensland Airports under which 74 per cent of it was sold to Kohlberg Kravis Roberts and Skip Capital for $3bn.
Both KKR and Skip could be around the hoop for the North Queensland opportunity as well.
Meanwhile, Dexus expressed some early interest in taking a look.
North Queensland Airports Group owns Cairns and Mackay Airports, and the Mackay Airport Hotel.
Based on its $3bn price tag, it is more expensive than Perth Airport – the subject of a recent transaction – and Queensland Airports, from an earnings multiple perspective.
The whole North Queensland Airports business is up for sale through Macquarie Capital.
The Infrastructure Fund owns 27 per cent of North Queensland.
A JPMorgan Asset Management-controlled fund owns 66 per cent, while the other owner is Perron with 7 per cent.
In 2018, Auckland International Airport offloaded its 24.6 per cent stake to Perron and The Infrastructure Fund for $370m.
Cairns Airport says that before the pandemic it catered to more than five million passengers per year.
The sales pitch is the opportunity to transform Cairns into an international destination with international flights from further afield.
The Schiphol Group is no stranger to the Australian market, already outlaying $600m with QIC in 2019 for a 70 per cent stake in the Hobart Airport.
At that time, the bidders tapped UBS and Lazard.
It is also a stakeholder in Brisbane Airport with an 18.7 per cent interest.
Backed by the Dutch government, it owns all of Amsterdam Airport Schiphol, Rotterdam The Hague Airport and Lelystad Airport.
It also owns 51 per cent of Eidhoven Airport and 40 per cent of Maastricht Aachen Airport.
The group also holds the operating franchise for John F. Kennedy International Airport’s Terminal 4.
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