A leading global infrastructure investor has given a boost to Glasgow and Aberdeen airports by taking a minority stake in the parent group, AGS.
Blackstone’s infrastructure strategy for individual investors has agreed to acquire a minority stake of 22 per cent in AGS Airports, a platform of freehold airports providing access to key UK and international markets, from AviAlliance for £235m. Blackstone is the world’s largest alternative asset manager with more than $1.1 trillion under management.
The news comes after Heathrow, the world’s second busiest airport, was shut down after a major fire in an electricity sub-station, which raised questions over how international travellers could fly more directly to regional cities within the UK.
Blackstone’s investment, together with AviAlliance and PSP Investments, is intended to support the growth of the travel and tourism industries across the UK.
AviAlliance, one of the world’s leading airport investors and operators, will remain the majority shareholder in AGS with a 78 per cent stake.
AGS handles over eleven million passengers annually and is the owner and operator of Glasgow, Aberdeen in Scotland and Southampton in England.
Greg Blank, chief executive officer of Blackstone Infrastructure Strategies, said, “Transportation remains a key thematic focus area for Blackstone, given continued strong global growth in leisure travel. AGS has access to one of the most diversified airline mixes of any major UK airport, and the company’s recent capital improvements aimed at accommodating large aircraft pave the way for new routes and higher traffic growth. We look forward to partnering with AGS to support this important growth in the United Kingdom.”
Sandiren Curthan, managing director and Global Head of Infrastructure Investments, PSP Investments, said: “We are pleased to bring Blackstone as a minority shareholder in AGS. Both PSP and Blackstone are like-minded investors with long-term patient capital to support the development of AGS, which will benefit from the operational expertise of AviAlliance.”
Gerhard Schroeder, managing director of AviAlliance, said: “We look forward to developing a constructive and long-term partnership with Blackstone for the benefit of AGS, its management and employees, as well as all other stakeholders at the three airports. Together, we will further strengthen the position of AGS in both Scotland and the wider UK.”
Blackstone Infrastructure has a strong track record of investing in transportation infrastructure, including through Mundys, the world’s largest toll road platform and manager of airports Roma Fiumicino and Ciampino, Signature Aviation, the world’s largest network of private aviation terminals, and ASPI, Europe’s largest toll road platform.
