JPMorgan Asset Management Buys Cairns, Mackay Airports

JPMorgan Asset Management has assumed complete control of North Queensland Airports Limited, operators of Cairns (CNS) and Mackay (MKY) Airports after acquiring a 33.9% shareholding from Macquarie Bank and the Perron family.

As reported in the Australian Financial Review, the purchase is something of a backflip for JPMorgan, who had originally wanted to sell their existing 66% stake in the airports.

As previously reported in Aero South Pacific, interested buyers included concessions and construction company, Vinci. However, the newspaper notes that the offers feel below expectations and JP Morgan ultimately exercised its right to assume 100% ownership.

North Queensland Airports Limited is valued at approximately AUD3 billion (USD1.95 billion).

JPMorgan and the other shareholders decided to try to sell out due to what they termed “unsolicited inbound investor interest”. Macquarie’s 27% shareholding was housed within The Infrastructure Fund, while the Perth-based Perron family managed its 7% stake through a corporate entity called Perron Airports Holdings Pty Ltd.

Measured by passenger movements, Cairns is Australia’s seventh busiest airport. According to Australian Government statistics, it handled 351,400 passengers in June. Thirteen passenger airlines use the airport although one, AirAsia, is axing its flights to Denpasar (DPS) in September.

Over seven hundred kilometres south, Mackay is a quieter airport, handling 78,600 passengers in June. Qantas, Jetstar, and Virgin Australia operate scheduled passenger flights to and from the airport. The sale includes the 152 room Mackay Ibis Hotel, located next to the airport terminal.

Photo: Aero South Pacific