Canada’s Public Sector Pension Investment Board (PSP Investments) has partnered with Grupo Aeroportuario del Sureste SAB de CV (ASUR), a Mexican airport group, to acquire a 50 percent interest in Aerostar Airport Holdings LLC, operator of the Luis Muñoz Marín International Airport in San Juan, Puerto Rico. PSP acquired a 40 percent stake in Aerostar, while ASUR increased its stake to 60 percent, which represents a combined investment of US$430 million. The seller was Oaktree Capital Management. PSP’s Patrick Charbonneau said the deal leverages the capabilities of AviAlliance, the pension fund’s industrial airport platform.
PSP Investments and ASUR acquire 50% stake in Aerostar, operator of San Juan Airport
PSP Investments acquires 40% interest; ASUR increases ownership interest from 50% to 60%
MONTRÉAL, May 30, 2017 /CNW/ – The Public Sector Pension Investment Board (“PSP Investments”) , one of Canada’s largest pension investment managers, and Grupo Aeroportuario del Sureste, S.A.B. de C.V. (NYSE: ASR; BMV: ASUR) (ASUR), today announced the acquisition of a 50% interest in Aerostar Airport Holdings LLC (“Aerostar”). They acquired the interest from funds managed by Oaktree Capital Management, L.P. (“Oaktree”). Aerostar has been the operator of the Luis Muñoz Marín International Airport in San Juan, Puerto Rico (“San Juan Airport”) since February 27, 2013.
PSP Investments acquired a 40% interest in Aerostar while ASUR, already a 50% shareholder in Aerostar, acquired an additional 10%, consolidating its total interest to 60%. This represents a combined investment of US$430 million. ASUR is the first privatized airport group in Mexico, and operator of Cancun Airport and eight other airports in southeast Mexico. This transaction has received all required regulatory approvals.
Following the finalizing of the acquisition, ASUR expects to consolidate Aerostar’s results into its financial statements.
“We are extremely pleased to increase our participation in San Juan Airport,” said Adolfo Castro Rivas, Chief Executive Officer of ASUR. “ASUR is committed to continuing to offer world-class service to all of its customers. We look forward to working closely with AviAlliance to provide further enhancements to operations and customer service, to benefit Puerto Rico for the long term.”
“This acquisition is an excellent fit with PSP Investments’ long-term investment philosophy and leverages the capabilities of AviAlliance, our airport platform,” said Patrick Charbonneau, Managing Director, Infrastructure Investments, PSP Investments. “We look forward to complementing ASUR’s expertise with that of AviAlliance, to develop a constructive and lasting partnership dedicated to delivering best-in-class operations at San Juan Airport.”
“Our goal is to strengthen the operational quality and service level of the San Juan Airport, further supporting the continued economic development and potential of the San Juan area,” said Holger Linkweiler, Managing Director, AviAlliance.
“As a value-added infrastructure investor, we always seek to create sustainable, long-term organizations that can thrive well beyond our ownership,” added Emmett McCann, Co-Portfolio Manager of Oaktree’s Infrastructure Investing strategy, specializing in the transportation sector. “Having worked with our partner, ASUR, to successfully complete our Capacity Enhancement Plan, build a strong management team, significantly improve the operations of Aerostar and, most importantly, manage a safe and secure airport, we are thrilled to hand our ownership stake over to ASUR and a world-class, long-term investor like PSP Investments.”
About the San Juan Airport
The Luis Muñoz Marín International Airport is the largest and busiest airport in the Caribbean, welcoming approximately 9 million passengers in 2016. It serves the capital of Puerto Rico, San Juan, and represents the island’s primary gateway for international and mainland-US destinations. The San Juan Airport was the first, and is currently the only, major airport in the US to have successfully completed a public–private partnership under the FAA Pilot Program. In 2013, Aerostar was granted a 40-year long-term lease agreement to operate the Luis Muñoz Marín International Airport, expiring in 2053.
Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR) is a Mexican airport operator with concessions to operate, maintain and develop the airports of Cancun, Merida, Cozumel, Villahermosa, Oaxaca, Veracruz, Huatulco, Tapachula and Minatitlan in the southeast of Mexico, as well as a 60% JV partner in Aerostar Airport Holdings, LLC, operator of the Luis Muñoz Marín International Airport in San Juan, Puerto Rico. The Company is listed both on the Mexican Bolsa, where it trades under the symbol ASUR, and on the NYSE in the U.S., where it trades under the symbol ASR. One ADS represents ten (10) series B shares. For more information, visit www.asur.com.mx
About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investment managers with C$125.8 billion of net assets under management as at September 30, 2016. It manages a diversified global portfolio composed of investments in public financial markets, private equity, real estate, infrastructure, natural resources and private debt. Established in 1999, PSP Investments manages net contributions to the pension funds of the federal Public Service, the Canadian Armed Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York and London. For more information, visit investpsp.com or follow Twitter @InvestPSP.
AviAlliance is one of the world’s leading private industrial airport platforms with a portfolio composed of shareholdings in 4 European airports: Athens, Budapest, Düsseldorf and Hamburg airports. In 2016, these airports handled 71.2 million passengers. In 2013, PSP Investments completed the acquisition of HOCHTIEF AirPort, which was rebranded as AviAlliance shortly following the transaction. Additional information is available online at www.avialliance.com
Oaktree is a leader among global investment managers specializing in alternative investments, with $100 billion in assets under management as of March 31, 2017. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Headquartered in Los Angeles, the firm has over 900 employees and offices in 18 cities worldwide. For additional information, please visit Oaktree’s website at http://www.oaktreecapital.com/.
For further information: Verena Garofalo, PSP Investments, 514-218-3795, email@example.com; MBS Value Partners, Susan Borinelli, +1-646-330-5907, firstname.lastname@example.org
Photo courtesy of Reuters/Ana Martinez