KKR, Skip Capital to Acquire 74% Stake in Queensland Airports

US private equity major KKR and Australian private investment fund Skip Capital on Thursday announced that they have signed definitive agreements to acquire a 74.25 percent stake in Queensland Airports Limited.

In the news release, KKR said the newly acquired airport stake is in line with its investment strategy in Australia, where the company focuses on transportation, energy, utilities and telecommunications.

Queensland Airports’ portfolio consists of Gold Coast, Townsville, Longreach and Mount Isa airports, and collectively services travellers across 39 domestic routes and six international routes, with nearly 66,700 annual aircraft movements.

“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,” Andrew Jennings, managing director and head of Australia and New Zealand infrastructure at KKR, said. “Queensland Airports plays an important role in connecting Queensland communities to the rest of Australia and beyond.”

Mobilising Infrastructure

KKR is making this investment from its Asia Pacific Infrastructure Investors II Fund, which is focused on infrastructure-related investments across Asia Pacific. This follows KKR’s announcement in June at the Indo-Pacific Partnership for Prosperity – a coalition to promote infrastructure investment in emerging-market economies of the Indo-Pacific Economic Framework – to mobilise infrastructure in the Indo-Pacific region, and marks KKR’s latest infrastructure investment in the Australia-New Zealand region.

KKR’s past investments in infrastructure in the Australia-New Zealand region include Spark Infrastructure, which owns electricity networks across Australia, and Ritchies Transport in New Zealand. No financial details were disclosed for this most recent deal, which is expected to close late this year.

Technology and infrastructure-focused Skip Capital invested in the acquisition through its Skip Essential Infrastructure Fund, which pursues opportunities in stable infrastructure and real assets. The company’s past investments include data centre owner and operator Stack Infrastructure Australia, Energy Bay and Group Homes Australia.

“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,” Kim Jackson, CEO and founder of Skip Capital, said.

Big-ticket Investments

In a news release last year, KKR said it has invested about $8.3 billion in the aviation sector since 2015. Investments include aviation finance company Altavair, aviation service provider Atlantic Aviation, on-demand private aviation company Wheels Up, among others.

Apart from the aviation sector, KKR has made major investments in other infrastructure in the Asia Pacific region. In June, KKR and Singaporean telecom operator Singtel agreed to invest as much as $2.2 billion for up to an 18.3 percent combined stake in ST Telemedia Global Data Centres in what stands as the largest digital infrastructure investment in Southeast Asia so far this year.

In December, the Australian Financial Review reported that GIP was in talks to acquire Queensland Airports Limited, the main airport operator in the Australian state.

Queensland Airports Limited recorded strong passenger growth throughout 2023, with 8.1 million people travelling through its four airports, up 10 percent from the previous year, according to its website.