Australian Infrastructure Fund (AIX) is pleased to note the announcement by Westralia Airports Corporation regarding its planned $500 million redevelopment of Perth Airport over the next three years. The planned redevelopment, which will be underpinned by an aeronautical pricing agreement currently being negotiated with airline customers, will comprise a number of projects, which are planned for completion by the end of 2014.The redevelopment is expected to significantly enhance Perth Airport’s functionality and customer experience and optimise the asset’s long-term value for AIX and its security holders. The planned redevelopment comprises the following major elements:
$270 million expansion of the international terminal including the addition of a shared pier to cater for larger twin aisle aircraft; $120 million construction of a new domestic terminal, Terminal WA, to meet the needs of Western Australia’s rapidly expanding regional market; $50 million expansion of airfield aprons, taxiways and aircraft parking areas; Expanded retail facilities; Further investments in roads and car parking.
AIX CEO Jeff Pollock said, “This is the most exciting development at Perth Airport since we acquired ur original stake in the asset more than a decade ago. The recent redevelopment of Queensland Airports Limited’ Gold Coast Airport, in which AIX holds a 49.1 per cent stake, is a compelling example of the value uplift created by a well planned and executed redevelopment. AIX strongly supports the edevelopment of Perth Airport, which, similar to Gold Coast Airport, boasts a strong and growing nderlying business. The $500 million redevelopment announced today which forms part of Perth Airport’s broader long-term growth plans, will be funded from a combination of asset level debt facilities and shareholder equity contributions. At this stage, it is expected that AIX‟s equity contribution will be funded from existing reserves and debt facilities at the fund level. AIX has in place an undrawn $30 million stand-by facility to fund organic growth initiatives.”
Westralia Airports Corporation (WAC), the owner and operator of Perth Airport, today announced that it expects to invest up to $500 million over the next three years to deliver new and expanded passenger terminals, expanded aircraft parking areas and expanded public access infrastructure.
The first stage of the redevelopment will commence in early 2011 and will include Significant expansion of theInternational Terminal; Adding a shared domestic/international pier to the current International Terminal, making greater use of the existing terminal assets and allowing airlines to swing aircraft between domestic and international markets; A new terminal designed to meet the needs of the growing Western Australian regional market, including the resource sector; Expanded aircraft parking and taxiways; Further investments in roads and car parking, including better access to and from the airport. The capacity created by this redevelopment program is expected to meet projected demand for the next eight to 10 years, at which time further consolidation developments will proceed.
The expansion of Perth Airport is underpinned by delivering a safe and efficient road network to allow greater access to and from the estate. WAC is working closely with the Western Australian Government to plan for a major upgrade to the arterial road network around Perth Airport as part of the ‘Gateway WA’ project, which is expected to see a major investment in the arterial roads in the vicinity of Perth Airport.
http://www.traderdealer.com.au/Fundamentals/aix
