Prospects for airport privatisation “look good” - Hochtief


SYDNEY (Centre for Asia Pacific Aviation) - In a recent newsletter to investors, Hochtief AirPort CEO, Dr Reinhard Kalenda, stated that government confidence in the privatisation of infrastructure has now been fully restored, following the "short decline" at the beginning of this decade.

  • Government confidence in the privatisation of infrastructure has been fully restored.
  • There is a considerably larger level of demand for investment in infrastructure facilities.
  • Airports have maintained stable cash flows and yields, gaining the trust of investors.
  • Institutional investors are showing greater interest in airports.
  • Competition for attractive airports is intensifying among investors.
  • Hochtief AirPort has established Hochtief AirPort Capital (HTAC) to increase its presence in the privatisation market.
But Dr Kalenda stated a shift has also taken place, with a "considerably larger" level of demand, as investment in infrastructure facilities become more popular. "Airports have been able to maintain the stable cash flows and yields that they promised and have thus gained the trust of investors. As a result, institutional investors have also begun to exhibit greater interest", said Dr Kalenda.

As competition for the most attractive airports intensifies, investors are looking for new strategies to boost their financial clout. Privatisation processes, like Budapest Airport, have attracted big names, like BAA, Fraport/Deutsche Bank, Copenhagen Airports and Macquarie Airports. Hochtief AirPort is also in the running with its newly established Hochtief AirPort Capital (HTAC).

HTAC was created to "pack more punch" in the privatisation market and is the combination of three partners. After "intensive exploratory talks", Hochtief AirPort created HTAC with Hastings Funds Management (Australia), Caisse de dépôt et placement du Québec (Canada) and KfW IPEX-Bank (Germany). According to Dr Kalenda, the partnership helps it "stay on the look-out" for major international airports.

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