Blackstone takes stake in UK airports group for £235m
Blackstone has bought a 22 per cent stake in AGS Airports in a deal valued at £235m, it has been announced.
The agreement sees AviAlliance offload some of its holdings in AGS, which owns Aberdeen, Glasgow and Southampton airport, although it will retain a majority 78 per cent stake.
AGS was acquired by PSP, one of Canada’s largest pension investment managers, last year after the Spanish infrastructure giant Ferrovial and Australia’s Macquarie agreed a £1.5bn deal.
AGS handles around 11m passengers per year at its three UK hubs. Airports are seen as a lucrative investment opportunity given the huge rise in travel demand across Europe since the Covid-19 pandemic.
Saudi Arabia’s sovereign wealth fund and the private equity firm Ardian last year agreed to buy a majority stake in Heathrow, the UK’s biggest airport.
Reports in November suggested London City Airport had been put up for sale by its Canadian pension fund owner, OTPP.
“Transportation remains a key thematic focus area for Blackstone, given continued strong global growth in leisure travel,” said Greg Blank, chief executive of Blackstone Infrastructure Strategies.
“AGS has access to one of the most diversified airline mixes of any major UK airport, and the company’s recent capital improvements aimed at accommodating large aircraft pave the way for new routes and higher traffic growth. We look forward to partnering with AGS to support this important growth in the United Kingdom.”
Sandiren Curthan, managing director of PSP Investments, said: “We are pleased to bring Blackstone as a minority shareholder in AGS.
“Both PSP and Blackstone are like-minded investors with long-term patient capital to support the development of AGS, which will benefit from the operational expertise of AviAlliance.”