The Infrastructure Fund, State Super and Australian Retirement Trust announce the sale of controlling stake in Queensland Airports Limited

The Infrastructure Fund (TIF), managed by Macquarie Asset Management (MAM), State Super and Australian Retirement Trust (ART) today announced an agreement for the sale of their combined 74.25% interest in Queensland Airports Limited (QAL) to a consortium comprising global investment firm KKR and the Skip Essential Infrastructure Fund.

QAL’s portfolio, comprising Gold Coast, Townsville, Mount Isa and Longreach airports, services travellers across more than 40 domestic and international routes, with nearly 66,700 annual aircraft movements.

The shareholder group has made significant investments to upgrade and expand the capacity and customer experience at QAL airports which contributed to a competitive process and strong outcome for their investors and members, and the local communities served by these important transportation assets.

At Gold Coast Airport, over the past five years more than $500m has been invested in expansion and improvement initiatives, 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 the airport 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, benefitting from shareholder investments in the airport’s entryway and terminal redevelopment.

Amanda McMillan, Senior Managing Director at MAM and former CEO of AGS Airports, an asset within MAM’s portfolio in the UK, said: “We are 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 benefitted travellers, staff and the communities they serve in Queensland and northern New South Wales.

“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.

“This is an excellent example of private capital supporting airports to meet growing capacity needs and traveller expectations by investing in upgraded and expanded infrastructure that will serve these growing regions of Australia for years to come.”

State Super CEO John Livanas, said: “State Super has been the proud owner of many of Australia’s iconic assets, supporting Australia’s development and generating exceptional returns for our members. 

“Alongside our partners, we have been proud to have invested in expanding the operations and capabilities of the airports in this portfolio, with Gold Coast Airport becoming the sixth largest in Australia.

“We are also proud that our members have been owners of Longreach Airport, an important site for the development of Australian aviation. 

“This transaction captures the value we have created for our members, and is an outstanding outcome for our funds. We look forward to seeing the future success of all the airports in the QAL portfolio.”

ART Head of Global Real Assets Michael Weaver, said: “As an institutional investor, we’re always looking for opportunities to deliver the best possible outcomes for our members, and the timing of this sale alongside other investors supports that goal. This process has formed part of our broader strategy to manage our portfolio, and we’re pleased with the outcome. Our capital helped support this investment to grow over many years but we now look forward to new investors coming in, and managing these assets as they enter a new phase.” 

QAL CEO Amelia Evans, said: “QAL plays an essential role connecting Queensland and northern NSW to the rest of Australia and the world. This year we will welcome more than 8.5 million passengers through our four airports. 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.

“QAL is grateful for the close working relationship we shared with our investment partners TIF, State Super and ART to successfully deliver an exciting vision for the company, and we look forward to continuing to work closely with our long-standing existing investors. 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 in the years ahead.” 

Macquarie Capital and Barrenjoey acted as Joint Financial Advisers to the shareholder group.