Port Hedland has sold a 50-year lease on the town’s international airport for $205 million to AMP Capital and Infrastructure Capital Group.
Port Hedland, 1650 kilometres north of Perth on the Pilbara coast, is the largest iron ore loading port in Australia with exports hitting record highs.
The consortium will pay the town’s council $165 million upfront and will invest another $40 million to redevelop the airport during the next five years.
AMP Capital’s Infrastructure Equity Fund will take a 44% stake, AMP Capital’s Core Infrastructure Fund 6%, and ICG’s Diversified Infrastructure Fund the remaining 50%.
AMP Capital’s airports portfolio includes Melbourne and Launceston airports and Newcastle Airport in the UK.
ICG Managing Director Tom Laidlaw says the airport is a unique asset.
“It is a critical piece of infrastructure for Port Hedland and the local resources industry and, as such, has characteristics that make it a great fit for our investors such as stable cash flows and the fact the nearest airport is some 250 kilometres away,” he says.
Port Hedland International Airport is the gateway to Western Australia’s North West with nearly 70 flights a week, including daily flights to Perth and direct weekly flights to Brisbane, Melbourne and Bali.