The Macquarie Asset Management-run The Infrastructure Fund, Australian Retirement Trust (ART), and State Super have announced the sale of a majority stake in Queensland Airports Limited (QAL).
The 74.25 per cent interest is set to be acquired by a consortium comprising KKR and the Skip Essential Infrastructure Fund for an undisclosed amount, with the consortium reported to have defeated AustralianSuper, among others, in the bidding war.
Namely, according to The Australian Financial Review, AustralianSuper was hoping to acquire QAL’s portfolio, which comprises Gold Coast, Townsville, Mount Isa, and Longreach airports, covering over 40 domestic and international trade routes.
Michael Weaver, head of global real assets at ART, described the sale as a “pleasing” outcome for Australia’s second largest super fund.
“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,” he said.
“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.”
The fund has previously voiced a strong appetite for assets like airports in its portfolios, with Brisbane Airport, Sydney Airport, and London’s Heathrow Airport among its largest infrastructure holdings as at 30 June 2024.
State Super chief executive John Livanas also said the QAL transaction is an “outstanding” outcome for the fund.
“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,” he said.
“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.
“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.”
The transaction is expected to close in late 2024, subject to customary conditions including regulatory approvals.
Industry funds have led investments in assets such as airports, toll roads, and utilities in recent years, with the Australian Prudential Regulation Authority recently revealing that they allocated approximately 11 per cent to infrastructure assets as of March 2024.
In comparison, public sector funds hold 7.8 per cent in infrastructure, while retail funds and corporate funds hold 3.8 per cent and 5.2 per cent in the asset class, respectively.
Speaking to InvestorDaily earlier this year, Simon Hudson, Playfair Asset Management co-chief investment officer, also highlighted the popularity of infrastructure assets in super portfolios.
He predicted the asset class will play a larger role in portfolios moving forward, given its risk/return profiles, long-term nature, and income-generating potential.
