AMP Capital, on behalf of investors in its global infrastructure equity platform, has agreed to acquire 100% of Leeds Bradford Airport, UK, (IATA: LBA) from Bridgepoint Advisers Limited. The deal is reported to be worth £220 million. AMP also owns Newcastle Airport (NCL) in the UK, and has stakes in Melbourne (MEL) and Port Hedland International airport (PHE) in Australia.
LBA is an international airport serving the cities of Leeds, Bradford and the broader Yorkshire area, with four million annual passengers and is a major base for the low-cost carrier Jet2. AMP said the airport’s mix of low-cost, charter and major international airlines benefit from a catchment area containing 5.3 million people, 2.9 million of whom live less than one hour from the airport. Leeds and Bradford are the third and seventh largest cities in the UK, respectively, and the Leeds City Region is home to the UK’s largest financial and business services centre outside London. The airport primarily offers international short-haul flights to customers as well as an established network of domestic destinations.
Simon Ellis, Head of Origination, Europe at AMP Capital, said: “With its strong underlying fundamentals including freehold ownership with well-invested infrastructure, a diversified airline mix and its catchment area in an economic hub of the North of England, Leeds Bradford Airport is a highly attractive investment and a great fit for AMP Capital’s global infrastructure platform.
“We believe there is a clear opportunity for performance enhancement through tailoring and improving the customer experience and working collaboratively with our key partners including airlines, government and local businesses. In addition, the airport serves the Yorkshire and the Humber region, one of the fastest-growing regions in the UK with a population growth of 6% since 2001 and there is also potential for further route development.
“AMP Capital’s heritage in transportation infrastructure investment and our experience of owning airports means we are well placed to develop the exciting opportunities presented by this investment.”