Gold Coast Airport owner Queensland Airports Limited has been bought by New York-based private equity powerhouse Kohlberg Kravis Roberts in partnership with the Kim Jackson-founded Skip Capital for about $3bn.
It comes after it was believed to be close to finalising the sale of a major stake in the business on Wednesday, and in the later stages of the competition, AustralianSuper was considered the party firming as the favourite.
But sources said AustralianSuper may have been struggling to get there on price.
Dexus, which has inherited airport assets through its acquisition of AMP Capital, was also in the race.
Investment banks Barrenjoey and Macquarie Capital were working on the sale and final bids were received from the three parties on Monday.
AustralianSuper, the country’s largest super fund, was being advised by Bank of America and has a tax advantage in buying the airport stake, being Australian owned.
Dexus lost its bidding partner, GIP, earlier on in the race, but still submitted an offer.
Skip Capital is overseen and founded by Ms Jackson, wife to billionaire Atlassian co-founder Scott Farquhar, and for its bid in partnership with KKR it was advised by RBC.
Queensland Airports owns regional airports including Gold Coast, Townsville, Mount Isa and Longreach, servicing travellers across more than 40 domestic and international routes, with nearly 66,700 annual aircraft movements and 8.5 million passengers annually.
The process sees a 74.25 per cent stake sold.
TIF is a holder of shares in the asset (35.77 per cent), with Perron Investments (24.6 per cent), Australian Retirement Trust (16.89 per cent), Allan Moss (0.82 per cent), Queensland Airport Investments (4.24 per cent), Project Cricket State Super Unit Trust (17.35 per cent), and Lipno Holdings (0.31 per cent).
The sellers of the 74.25 per cent interest were TIF, State Super and ART.
Earlier, Palisade Investment Partners and French investor Vinci were in the mix, along with Stonepeak, but they fell away.
The airport operator was on the market last year, but the sale was delayed while structural matters surrounding the transaction were ironed out, and initially, 40 per cent was on offer for more than $1bn.
For the year to June 2023, it generated $169m in revenue and a $32m net profit.
Private equity race for Singapore Post assets
The $1bn competition for Singapore Post’s Australian assets is now one only among private equity firms.
Sale of $3bn Aveo business unlikely by year’s end
The sale process for Brookfield’s $3bn-plus retirement living business, Aveo, is believed to be getting pushed into the new year.