KKR, a leading global investment firm, and the Skip Essential Infrastructure Fund, announced the signing of definitive agreements under which a consortium of KKR and the Skip Essential Infrastructure Fund will acquire a 74.25% stake in Queensland Airports from The Infrastructure Fund, managed by Macquarie Asset Management, State Super, and Australian Retirement Trust.
Queensland Airports’ portfolio comprises Gold Coast, Townsville, Longreach and Mount Isa airports, and collectively services travellers across its 39 domestic routes and six international routes, with nearly 66,700 annual aircraft movements.
KKR is making this investment from its Asia Pacific Infrastructure Investors II Fund. This follows KKR’s announcement in June 2024 at the Indo-Pacific Partnership for Prosperity to mobilise infrastructure in the Indo-Pacific region, and marks KKR’s latest infrastructure investment in the ANZ region. Past investments in ANZ infrastructure have included: Spark Infrastructure, which owns high-quality, regulated electricity networks across Australia; and Ritchies Transport, a leading transportation operator in New Zealand.
Skip Capital is making this investment from the Skip Essential Infrastructure Fund. Past investments include data centre owner and operator Stack Infrastructure Australia, Energy Bay, Group Homes Australia and Spark Infrastructure.
The transaction is expected to close in late 2024, subject to customary conditions including regulatory approvals. Financial details were not disclosed.
KKR and the Skip Essential Infrastructure Fund were advised by RBC Capital Markets as financial advisor and Gilbert + Tobin as legal counsel.
Andrew Jennings, Managing Director & Head of Australia and New Zealand (ANZ) Infrastructure, KKR, said, “Our investment in Queensland Airports is a unique opportunity to acquire a high-quality asset that provides critical services in a resilient market with strong macro tailwinds. Queensland Airports plays an important role in connecting Queensland communities to the rest of Australia and beyond. 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.”
Skip Capital CEO and founder Kim Jackson, said, “The Skip Essential Infrastructure Fund is proud to back the Gold Coast, Townsville, Longreach and Mt 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.”
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.”
