Macquarie Group Sells UK Airport Holdings to Canadian Pension Fund for £1.53 Billion

Highlights:

• Strategic Sale: Macquarie Group Ltd (ASX: MQG) sold its UK airport holdings for £1.53 billion, achieving a 50% gain on its initial investment.
• Market Timing: The sale aligns with the strong rebound in UK airport traffic post-pandemic, enabling high-value transactions across the sector.
• Canadian Expansion: Buyer AviAlliance, owned by Canada’s PSP Investments, expands its European airport portfolio with the acquisition of Southampton, Glasgow, and Aberdeen airports.

Strategic Sale Aligns with Infrastructure Fund Wind-Down Amid UK Market Rebound

Macquarie Group Ltd (ASX: MQG) has announced the sale of its stake in three UK airports—Southampton, Glasgow, and Aberdeen—to AviAlliance, a subsidiary of Canada’s Public Sector Pension Investment Board (PSP Investments), for a total of £1.53 billion (approximately AU$3 billion). The sale represents a nearly 50% gain on the initial investment made a decade ago by Macquarie and its co-investor, Spain's Ferrovial. This transaction aligns with the planned wind-down of the Macquarie European Infrastructure Fund 4 (MEIF4), a €2.75 billion (AU$4.5 billion) investment vehicle.

Timing Aligns with UK Market Recovery

The decision to exit comes at an advantageous time, as British airport traffic shows signs of a strong recovery from pandemic lows, creating favorable conditions for high-value airport transactions. Recent deals involving other major UK airports, such as Heathrow and Edinburgh, underscore the current demand for aviation assets. Macquarie’s timely exit reflects the market’s revived interest and confidence in airport assets amid an increase in travel activity and revenue potential.

Strategic Expansion for Canadian Buyer

AviAlliance, which is fully owned by PSP Investments, is an established player in the global aviation sector with existing airport investments in Athens, Dusseldorf, Hamburg, and Puerto Rico. This acquisition broadens AviAlliance’s portfolio and strengthens its European presence, aligning with its strategy to capitalize on high-quality infrastructure assets. At the time of writing, the acquisition highlights the continued appeal of strategic airport investments as the global aviation industry continues to rebound.

This sale not only supports Macquarie’s ongoing fund management objectives but also enhances AviAlliance's position within the growing UK and European markets, setting both entities up for future growth.

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