Owner of Glasgow and Aberdeen airports sold in major £1.5 billion deal

In a significant business deal, the owner of Glasgow and Aberdeen airports has been sold for a staggering £1.5 billion. Spanish construction powerhouse Ferrovial and their joint venture partner Macquarie reached an agreement to sell AGS Airports to AviAlliance for £900 million, inclusive of taking on £653 million in debts. This transaction, expected to be finalized in the first quarter of the upcoming year, marks a notable development in the aviation industry.

With a combined annual passenger throughput exceeding 10.8 million individuals, these airports serve as crucial connectors for various communities in Scotland and the South East. AviAlliance, owned entirely by the Canadian pension fund Public Sector Pension Investment Board, will incorporate AGS Airports into its current selection of four airports, spanning across Athens, Dusseldorf, Hamburg, and San Juan.

Gerhard Schroeder, the managing director of AviAlliance, expressed the company’s commitment to long-term support for the airports. The vision includes expanding route networks, enhancing passenger experiences, and implementing sustainable strategies to further develop the airports under their ownership. The sale concludes an era initiated in 2014 when Ferrovial and Macquarie jointly acquired Aberdeen, Glasgow, and Southampton airports from the Heathrow Airport group for £1.05 billion, debts included.

Throughout their ownership tenure, the duo has injected £250 million into the airports, financing crucial expansions such as a 50% increase in terminal space at Aberdeen International Airport and a multimillion-pound runway extension project at Southampton Airport. Martin Bradley, the regional head of infrastructure for Macquarie Asset Management, expressed satisfaction in facilitating the transition to AviAlliance and looked forward to the forthcoming growth phase.

Ferrovial anticipates a capital gain of 290 million euros (£241.3 million) from its 50% stake in AGS Airports. The sale exemplifies a strategic move in the aviation sector, underlining the lucrative opportunities and evolution within the industry. The handover signifies a new chapter for the airports under the guidance of AviAlliance, promising advancements in services, connectivity, and sustainability initiatives for passengers and stakeholders alike.

Insights:
The sale of Glasgow and Aberdeen airports in a billion-pound deal signifies the continuous evolution and growth in the aviation industry. The acquisition by AviAlliance presents an opportunity for substantial investment in infrastructure and services, benefiting passengers and the regional economy. The commitment to sustainable strategies and expanded route networks highlights a forward-looking approach in airport management, aimed at enhancing customer experiences and operational efficiency. This transaction underscores the strategic importance of aviation infrastructure and the significant investments made by global entities to drive progress and innovation in the sector.