AGS Airports, Operator of Aberdeen and Glasgow Hubs, Sold in £1.53 Billion Transaction

The entity managing Aberdeen, Glasgow, and Southampton airports is undergoing a sale transaction exceeding £1.5 billion in value. Ferrovial, a Spanish construction conglomerate, and Macquarie, an Australian finance firm—each holding a 50% interest in AGS Airports—reached an agreement to divest the operator to AviAlliance for £900 million. AviAlliance is also set to assume £653 million in existing debts. The finalization of this agreement is anticipated during the first quarter of next year. Annually, over 10.8 million travelers utilize these three airports, which facilitate connections throughout Scotland and to the south east of England. AviAlliance, a subsidiary entirely owned by the Public Sector Pension (PSP) Investment Board, a Canadian pension investor, will integrate AGS Airports into its current collection of four airports located in Athens, Greece; Dusseldorf and Hamburg in Germany; and San Juan in Puerto Rico. PSP Investments maintains a long-established presence as an investor in infrastructure initiatives across the UK, encompassing a controlling interest in Forth Ports, recognized as one of the primary port operators in Scotland and England, alongside the rolling-stock major Angel Trains. Gerhard Schroeder, AviAlliance’s managing director, stated: “We are committed to supporting the airports over the long-term to expand their route networks, further improve the passenger experience and implement the airports’ sustainability strategy.” Ferrovial and Macquarie collaborated to acquire Aberdeen, Glasgow, and Southampton airports from the Heathrow Airport group in 2014, in a transaction valued at £1.05 billion, inclusive of debts. Subsequently, they established AGS Airports as a 50/50 joint venture following that acquisition. The firms report having allocated £250 million in investments across the three airports during their period of ownership. This includes £20 million dedicated to increasing Aberdeen International Airport’s terminal capacity by 50%, in addition to a £17 million extension of the runway at Southampton Airport. Earlier this year, they had indicated they were considering a divestment. Martin Bradley, Macquarie Asset Management’s regional head of infrastructure, commented: “Following this decade of investment, we are pleased to be passing the baton to AviAlliance to unlock the next phase of growth.” Ferrovial announced its projection of realizing a capital gain of 290 million euros (£241.3 million) from its 50% stake in AGS. Copyright 2024 BBC. All rights reserved. The BBC disclaims responsibility for the content found on external websites. Information regarding our external linking policy is available.