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Australia’s TCorp, Sunsuper acquire Ontario Teachers’ stakes in two U.K. regional airports
Transactions - NOVEMBER 6, 2017

Australia’s TCorp, Sunsuper acquire Ontario Teachers’ stakes in two U.K. regional airports

by Jody Barhanovich

Ontario Teachers’ Pension Plan and Australia’s New South Wales Treasury Corp. (TCorp) and Sunsuper Superannuation Fund (Sunsuper) will become investment partners in Bristol Airport and Birmingham Airport, two of the U.K.’s leading regional airports.

Ontario Teachers’ has entered a definitive agreement by which it will sell 30 percent of its stakes in both Bristol and Birmingham airports to TCorp as trustee of TCorpIM Direct Investment Fund E and Sunsuper Pty Limited as trustee of Sunsuper. TCorp and Sunsuper will each acquire 15 percent of Ontario Teachers’ stakes in Bristol Airport and Birmingham Airport. Following completion, Ontario Teachers’, TCorp and Sunsuper will own 70 percent, 15 percent and 15 percent of Bristol Airport and 33.8 percent, 7.2 percent and 7.2 percent of Birmingham Airport, respectively.

Bristol Airport is the ninth-largest airport in the United Kingdom with 7.5 million passengers in 2016, and Birmingham Airport is the seventh-largest airport in the United Kingdom with 11.6 million passengers in 2016.

The sale is expected to complete in late November.

TCorp is the financial markets arm of the public sector in New South Wales, Australia, and Sunsuper is one of Australia’s largest and fastest-growing superannuation funds.

 

Ontario Teachers’ is the largest private investor in airports in Europe, with holdings in five freehold airports, which include Copenhagen Airport, Brussels Airport, Bristol Airport, Birmingham Airport and London City Airport. Ontario Teachers’ has been an investor in Bristol and Birmingham airports since 2001, increasing its stakes to 100 percent (Bristol) and 48.25 percent (Birmingham) in 2014 with the intention of bringing in new partners.

Global airport construction and transactions have been booming throughout 2017. In the United States, Denver International Airport just announced its plans to increase the number of gates in a project that will cost $1.5 billion, and in October, AMP Capital, on behalf of investors in its global infrastructure equity platform, acquired Leeds Bradford Airport in England from Bridgepoint Advisers Limited.

 

 

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