There’s a lot riding on the potential sale of a $700m-plus stake in Perth Airport, because if it does not transact, there could be ramifications for the sales playing out for airport assets on the east coast.
So far, it is understood that existing owners of Perth Airport and outsiders have baulked at the offer price by The Infrastructure Fund and Australian Retirement Trust for their interests, which some estimate to be about 40 per cent above the current holding value.
Macquarie-managed TIF owns 7.19 per cent and ART 1.95 per cent, and sources say they want a value equal to about 27 times the airport’s earnings for the holdings – some think a better value is about 24 times.
AustralianSuper was interested, but not at that value.
A successful sale means it’s game on for the sale processes involving Queensland Airport Limited, which owns Gold Coast, Townsville, Mount Isa and Longreach airports, and Brisbane Airport.
If Perth investors don’t get a bidder by December, and they lower the price, they will have to return to shareholders and give them the first offer.
But if the asset does not transact, it’s expected investors with stakes in QAL and Brisbane are going to have the 40 per cent premium in their mind and are going to be reluctant to settle for less.
It’s all anticipated to play out around March next year.
Working on the sale of Perth Airport is UBS, while Macquarie Capital is advising Brisbane Airport, while Barrenjoey is working on QAL.
The high price expectations came after offers at that level were made for a stake in Melbourne Airport, say sources, but that was for operational control, and Sydney and Melbourne airports are considered the best nationally.
Other Perth Airport owners are Utilities Trust of Australia (38.26 per cent), Future Fund (30.01 per cent), Perth Airport Property Fund (17.34 per cent) and AustralianSuper (5.25 per cent).
Meanwhile, some believe that more of Brisbane Airport could also be on offer after Igneo Infrastructure Partners shifted a 12.5 per cent holding into another fund, with QIC a possible seller.
It’s the third-largest Australian airport by passenger numbers.
The airport is owned by the Brisbane Airport Corporation, of which Igneo owns 26.6 per cent, QIC 25 per cent, IFM 20 per cent, Royal Schiphol Group 19.6 per cent, Spirit Super 4.9 per cent and Patrizia managed shareholdings 3.9 per cent.
The Barrenjoey-advised Queensland Airport Limited has KKR with Skip Capital (advised by RBC), GIP, Stonepeak, Dexus, Vinci and Palisade as among its prospective buyers, but the auction is set to heat up in the new year.
Local Australian infrastructure investor Palisade is likely to partner with an international group, which would need Australian equity in its offering to have permission to take control of the holding.
On offer is 74 per cent of the asset.
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