Blackstone is set to buy a minority stake in airports group AGS Airports from majority shareholder AviAlliance for £235 million off the back of "continued strong global growth in leisure travel".
The global real estate giant announced in a statement on Friday morning that its infrastructure strategy for individual investors had agreed to acquire a 22% stake in AGS.
The business, described by Blackstone as a "platform of high-quality freehold airports providing access to key UK markets", handles more than 11 million passengers annually and is the owner and operator of three UK airports: Glasgow and Aberdeen in Scotland and Southampton in England.
AviAlliance, one of the world’s biggest airport investors and operators, will remain the majority shareholder in AGS with a 78% stake, Blackstone confirmed. AviAlliance is the wholly-owned airports platform of the Public Sector Pension Investment Board, one of Canada's largest pension investors.
Blackstone said the deal was "intended to support the continued growth of the travel and tourism industries across the United Kingdom". Greg Blank, chief executive officer of Blackstone Infrastructure Strategies, said in a statement: "Transportation remains a key thematic focus area for Blackstone, given continued strong global growth in leisure travel.
"AGS has access to one of the most diversified airline mixes of any major UK airport, and the company’s recent capital improvements aimed at accommodating large aircraft pave the way for new routes and higher traffic growth. We look forward to partnering with AGS to support this important growth in the United Kingdom."
Sandiren Curthan, managing director and global head of infrastructure investments, PSP Investments, added: "We are pleased to bring Blackstone as a minority shareholder in AGS. Both PSP and Blackstone are like-minded investors with long-term patient capital to support the development of AGS, which will benefit from the operational expertise of AviAlliance."
Gerhard Schroeder, managing director of AviAlliance, added: "We look forward to developing a constructive and long-term partnership with Blackstone for the benefit of AGS, its management and employees, as well as all other stakeholders at the three airports. Together, we will further strengthen the position of AGS in both Scotland and the wider United Kingdom."
Blackstone Infrastructure has a track record of investing in transportation infrastructure, including through Mundys, the world’s largest toll road platform and manager of airports Roma Fiumicino and Ciampino, Signature Aviation, the world’s largest network of private aviation terminals, and ASPI, Europe’s largest toll road platform.