AviAlliance is the wholly-owned airports platform of the Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension investors. Founded in 1997 and acquired by PSP Investments in 2013, the AviAlliance portfolio of four airports collectively served 73 million passengers in 2023, an increase of more than 20% compared to 2022.
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“Aberdeen, Glasgow and Southampton airports provide vital connectivity for communities in Scotland and the South East of England,” said AviAlliance managing director Gerhard Schroeder said.
“As a seasoned airport investor and manager with in-depth industry expertise, AviAlliance will enable each airport to realize their full potential. We are committed to supporting the airports over the long term to expand their route networks, further improve the passenger experience and implement the airports’ sustainability strategy.”
The deal is subject to regulatory approvals and is expected to close in the first quarter of next year.
PSP Investments, which opened its second international office in London in 2016, has a number of other UK assets in its portfolio including majority ownership positions in Scotland’s Forth Ports and Angel Trains, the largest rolling stock company in the United Kingdom.
“Our PSP infrastructure strategy consists of investing in sectors where PSP Investments has strong expertise and a track record of delivering value for our beneficiaries,” managing director Sandiren Curtham said.
“Airports is a sector which fits that strategy given AviAlliance’s deep operational expertise. We are delighted to add AGS Airports to our infrastructure portfolio and look forward to working with our key stakeholders to improve services to the communities in which AGS Airports operate, recognizing the critical role that these airports play in supporting economic growth in Scotland and England.”
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The announcement follows the sale earlier this year of a majority stake in Edinburgh Airport to one of the world’s leading air travel facility operators. Global Infrastructure Partners (GIP) announced in April it had sold 50.01% of Scotland’s busiest airport to French-headquartered Vinci in a deal worth £1.27bn.
Latest accounts filed with Companies House show that AGS cut its pre-tax losses to £10m in 2023, down from £36m the previous year, on revenues which rose to £195m from £166m previously.
Passenger numbers across all three airports rose by 13.5% to 10.4 million. Within that, numbers at Glasgow were up by 12.9% at 7.4 million while Aberdeen recorded a 13.6% increase to 2.3 million.
Established in 1999 and headquartered in Ottawa, PSP Investments is one of Canada’s largest pension investors with some £149bn of assets under management. Its global includes investments in capital markets, private equity, real estate, infrastructure, natural resources, and credit investments on behalf of the Government of Canada for the pension plans of the federal public service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force.