Scott Farquhar’s Skip Capital and KKR buy controlling interest in Queensland Airport Ltd
A private investment fund co-founded by Atlassian billionaire Scott Farquhar has joined forces with global giant KKR to buy a controlling interest in Queensland Airports.
A private investment fund co-founded by Atlassian billionaire Scott Farquhar has joined forces with global investment firm KKR to buy a controlling interest in Queensland Airports Limited.
Skip Capital’s Skip Essential Infrastructure Fund and US-based giant KKR have secured a 74.25 per cent stake in QAL after a highly contested sale process finalised on Thursday morning.
QAL was established in 2003 as part of a corporate restructure of the shareholding of Gold Coast Airport at Coolangatta.
The consortium bought out three shareholders – Macquarie Asset Management (MAM)-run The Infrastructure Fund, State Super and Australian Retirement Trust – in a deal believed to be worth about $3bn.
It leaves Perron Investments (24.62 per cent) as the other owner of QAL., which comprises Gold Coast, Townsville, Mount Isa and Longreach airports, operating under 99-year leases.
The sale was marketed with a guidance for $140m in earnings.
Skip Capital chief executive Kim Jackson – who co-founded the investment fund with Mr Farquhar – said the Skip Essential Infrastructure Fund was proud to back the Gold Coast, Townsville, Longreach and Mount Isa airports. “Alongside delivering critical transport into one of Australia’s highest growth corridors of the Gold Coast, we are excited about our plans to lift the airport’s offering for residents and tourists, and drive energy innovation across the group,” she said.
It is the biggest airport sale in Australia since Aviation Alliance, a consortium led by Global Infrastructure Partners and IFM Investors, paid $32bn for Sydney Airport in early 2022.
The QAL transaction is expected to close in late 2024, subject to customary conditions including regulatory approvals. Financial details were not disclosed.
QAL operates more than 40 domestic and international routes, with nearly 66,700 annual aircraft movements.
Over the past five years more than $500m has been invested in expansion and improvement initiatives at the Gold Coast Airport, including the southern terminal expansion in 2022, to double its footprint, and the addition of retail outlets, six new gates, new border control facilities and four aerobridges.
It is Australia’s sixth busiest airport with a record 5.6 million travellers using it in the past year.
The Gold Coast Airport Master Plan, which is currently in the approval phase, will further advance the Gold Coast as one of Australia’s leading destinations, delivering a future-focused precinct with the addition of a retail village, health and wellness hub, and conference and tech centre.
Recent agreements signed with Qantas and Virgin Australia will further support passenger growth across existing and new routes, including new connections planned by Qantas to Hamilton and Dunedin, making Gold Coast Airport Australia’s most connected airport to New Zealand.
Townsville Airport recently delivered its busiest year on record with over 1.7 million passengers travelling between July 2023 and June 2024, benefiting from shareholder investments in the airport’s entryway and terminal redevelopment.
KKR managing director and head of Australia and New Zealand infrastructure Andrew Jennings said the QAL investment was “a unique opportunity” to acquire a high-quality asset that provides critical services in a resilient market with strong macro tailwinds.
“We look forward to collaborating with the Skip Essential Infrastructure Fund, Perron Group and the management team to drive growth initiatives to better serve passengers from Australia and abroad,” he said.
KKR made the QAL investment from its Asia Pacific Infrastructure Investors II Fund.
Past investments in Australia and New Zealand infrastructure have included Spark Infrastructure, which owns high-quality, regulated electricity networks across Australia; and Ritchies Transport, a leading transportation operator in New Zealand.
Amanda McMillan, senior managing director at MAM and former CEO of AGS Airports, an asset within MAM’s portfolio in the UK said they were proud to have worked closely with QAL management, on behalf of TIF’s investors, to invest in new facilities and expanded services at the airports, which has benefited travellers, staff and the communities they serve in Queensland and northern NSW.
“As the world’s largest infrastructure manager, MAM has been investing in airports since 2001 and has leveraged the expertise of its global teams to help drive QAL’s growth while generating strong returns for TIF investors.”
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Originally published as Scott Farquhar’s Skip Capital and KKR buy controlling interest in Queensland Airport Ltd
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