BaCH Airports Consortium, headed by James Fielding Group and Commonwealth Bank, have been named the winning bidder for the $211 million Sydney Basin Airports tender.
The sale includes Bankstown, Hoxton Park and Camden airports.
BaCH Airports says the acquisition price is excellent value for the three airports, which represent a unique range of outstanding opportunities taking account of both the aeronautical activities and property development opportunities at each of the sites.
The consortium says it is eager to work with the existing management team, staff and other stakeholders to provide the capability and commitment to build on the airports status as providers of first class General and Specialised Aviation facilities in the Metropolitan Sydney area. In addition, BaCH Airports is keen to grow the complementary property development business.
Managing director of James Fielding Group Greg Paramor, says the purchase is a watershed transaction for JFG.
“Not only have we secured an excellent investment for the infrastructure fund but also control over approximately 150 ha of extremely attractive development land in strategic locations. We have some exciting plans for the development of this land over the next several years.”
BaCH Airports winning bid has been sponsored by the Commonwealth Bank of Australia, the James Fielding Group and Toll Holdings Limited.
Commonwealth Bank of Australia acted as Financial Adviser to the consortium. The success of the consortium was built around a focus on the discrete business opportunities presented at the airports and the successful blending of the complementary skills of each member of the sponsor group.
The Sydney Basin Airports success follows on previous airport acquisition success for the Commonwealth Bank with both the Brisbane and Sydney Airport privatisation processes.
The Bank is currently a sole or leading financier to each of Alice Springs, Brisbane, Darwin, Melbourne, Perth and Sydney Airports.
James Fielding Group is a diversified property group whose objective is to be a leading fully integrated property and infrastructure investment, funds management, development and property management business targeting sound returns for its investors and a high level of service to its clients. JFG s management team has considerable experience in property investment and management.
JFG manages in excess of $1.5 billion in property and infrastructure assets on behalf of institutional and private client investors.
James Fielding Infrastructure is the business unit of JFG responsible for the management of infrastructure funds and the initiation and management of opportunities such as SBAL on behalf of the Group. JFG acted as bid sponsor and equity investor in the SBAL acquisition and will play an ongoing role as development manager for development opportunities at Bankstown and Hoxton Park airports.
BaCH Airports said that the bid has been structured to take full account of the Commonwealth s sale objectives and the different nature of the sale of Bankstown and Camden Airports and Hoxton Park Airport. The Consortiums company structure is committed to ensuring that Bankstown and Camden Airports have appropriate expertise and financial capabilities to operate and develop the airports over the full term of their airport leases, while Hoxton Park Airport will revert to freehold after a final five years of airport operations.
The BaCH Airports Consortium consists entirely of Australian owned corporations and investors. The ownership structure complies with Airport Act restrictions with greater than 51% Australian ownership and less than 15% cross ownership of Sydney Airport.
The purchase will also be funded by property and infrastructure debt facilities provided by the Commonwealth Bank.
The existing management has maintained high levels of performance in preparing the airports for privatisation and are expected to play a pivotal role in the future development of the Airports.
The Consortium looks forward to working with the management to implement BaCH Airports Business Plan that has been formed following extensive work through the sale process and which includes the development of the airport Master Plan and the strategy for development of the aeronautical business.
The Consortium will ensure that the Airports will have the financial capability to maintain and enhance service levels to future airport users with appropriate investment in aeronautical infrastructure.
James Fielding Group will provide property development expertise at the Airports through an ongoing development management agreement.
Key aspects of BaCH Airports strategy for the Sydney Basin Airports involves:
– Retaining existing Bankstown Airport management and staff to ensure that Bankstown and Camden Airports will continue to be premier providers of General Aviation and specialised aviation services in Australia;
– Continuation of recent growth in General and Specialised Aviation traffic, including the development of current multi-modal logistics operations at Bankstown Airport;
– Access to finance to improve the efficiency of aeronautical operations at Bankstown Airport and develop the aeronautical infrastructure in line with the Consortiums Business Plan;
– Maintaining safety and security at the airports, consistent with any mandatory requirements;
– Optimising property development opportunities on the Bankstown Airport site consistent with the development of aeronautical operations at the airport.
– Development of excess land at the Bankstown site has the potential to provide 15,000 direct and 22,000 indirect jobs over the next 10 years; and
– Continuing to provide aeronautical operations at Hoxton Park Airport until the mandated transition of the site to freehold after 5 years, after which the site shall be available for non-aviation development.
The development of the Hoxton Park site is expected to have an employment focus with a significant economic benefit for surrounding districts.
