Queensland Airports sale: Gold Coast Airport sold to KKR-Skip consortium for $3bn

The Gold Coast Airport and sister terminals Townsville, Mt Isa and Longreach have sold for a whopping $3bn, with a consortium of huge companies involved. FIND OUT MORE

The Gold Coast Airport - and sister terminals in Townsville, Mt Isa and Longreach - have sold in a $3 billion deal to a consortium including the founder of software giant Atlassian.

It means the Gold Coast City Council’s bid for a stake in running the Gold Coast Airport, is dead in the water.

The victorious consortium, including global company KKR and Skip Essential Infrastructure Fund linked with Atlassian co-founder Scott Farquhar, has spent $3bn to secure Queensland Airports Ltd. Queensland Airports runs the Gold Coast, Mount Isa, Townsville and Longreach airports.

Artist impression of the Gold Coast Airport masterplan, which features new hotels, a light rail connection and retail precinct. Picture: Supplied

The deal, understood to have been signed in the early hours of Thursday morning, came four days after binding offers were submitted on Monday.

Council had partnered on its offer with ASX-listed real estate investment company Dexus, while the other unsuccessful bidder was AustralianSuper.

Scott Farquhar.

Mayor Tom Tate said: “Given the importance of the Gold Coast Airport to our city, council took the decision to participate in the sale process along with partners.

“The airport is simply vital to the future of the Gold Coast, so I was pleased we were in a financial position, as approved by Queensland Treasury, to be at the table for this process.

“We have now been advised KKR and Skip are the successful consortium. Ultimately, I am thrilled globally renowned players such as KKR and Skip will join with Peron Group, who the City already has a great relationship with, to steer QAL forward.

“This is a vote of confidence in our city from a globally renowned S&P500 company and its partner. With this consortium driving our airport’s future, I see nothing but upside.”

Councillors late last year in a closed session were briefed on the pending QAL sale as a “special strategic investment opportunity”.

The Bulletin on Thursday was told by City sources the deal had been finalised after months of negotiations with potential buyers.

Queensland Airports (QAL) CEO Amelia Evans said: “This year we will welcome more than 8.5 million passengers through our four airports (and) we have an exciting future ahead including the proposed Gold Coast Airport Master Plan and the approved Townsville Airport Master Plan, which will both stimulate new growth and economic opportunities, as well as customer experience improvements.

“Today’s announcement is also a credit to our hardworking team members who have helped us grow and improve the airport experience for the benefit of travellers.

“We are now excited to embark on a new chapter with the Skip Essential Infrastructure Fund and KKR and to work with them to grow our airports.”

Experience Gold Coast CEO John Warn called it “great news” which “highlights the attractiveness of the Gold Coast as an iconic tourism destination”.

“It also demonstrates the dynamic nature of the visitor economy and the necessity for continued investment in our aviation infrastructure.

“With a shared commitment to drive growth in this sector, we will continue to promote and enhance direct services to the Gold Coast.

“We remain focussed on repositioning the Gold Coast and diversifying our international source markets, allowing us to seize emerging opportunities and target high-yield segments that will drive sustainable growth. We look forward to building a great relationship with the incoming owners.”

Mayor Tate had used his casting vote to start CEO Tim Baker investigating a potential deal.

Mayor Tom Tate. (Photo by Chris Hyde/Getty Images for Football Australia)

At the time, new councillors were opposed with the 14 representatives divided and wanting more updates.

The Community Alliance lobby group had been strongly opposed to a City offer, concerned about a conflict of interest in managing issues like ensuring a curfew remains in place.

The city’s leading business body had backed a council push to buy the Gold Coast Airport.

Gold Coast Central Chamber of Commerce president Laura Younger had said there were many positives in pursuing the proposal but it would “depend on return on investment.”

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Originally published as Queensland Airports sale: Gold Coast Airport sold to KKR-Skip consortium for $3bn