Hostplus, IFM to raise stakes

A Jetstar flight taking off from Adelaide Airport. Picture Mark Brake

Hostplus and IFM Investors are expected to step in and buy an additional stake in Adelaide Airport that is on the market.

Adelaide Airport is 15 per cent owned by Hostplus, while IFM owns 15.1 per cent, Igneo Infrastructure Partners 15.3 per cent, Perron Group 4.1 per cent and UniSuper 50.5 per cent.

Igneo is offloading its interest and investment bank Barrenjoey is running the sale process.

Sources say existing owners have the first right to buy, with Hostplus and IFM keen to take on a larger ownership.

Holding company Adelaide Airport Ltd purchased the operating leases for Adelaide and Parafield airports in 1998 to operate both for 50 years, with the option of a further 49 years.

Adelaide Airport is the fifth-largest domestic and international airport in Australia. Parafield Airport is South Australia’s premier general aviation airport.

Sources estimate the stake could be offloaded for about $350m.

The airport asset stake is among a number of airport interests that have been on offer in the past 18 months. The Cairns and Mackay airport owner, North Queensland Airports group, was on offer this year for $3bn but a sale has failed to eventuate.

Last year, Kohlberg Kravis Roberts and Skip Capital paid about $3bn for just over 74 per cent of the Gold Coast Airport owner, Queensland Airport Ltd.

AustralianSuper increased its stake in Perth Airport last year, buying an additional 25 per cent from the UTA fund.