Airport investor and operator AviAlliance has acquired Aberdeen, Glasgow and Southampton (AGS) Airports from Ferrovial and Macquarie for an enterprise value of £1.53bn (US$1.9bn). The transaction is subject to regulatory approvals and is expected to complete in Q1 2025.
The future of AGS Airports with AviAlliance
According to the companies, AGS Airports benefits from strong fundamentals and a continued demand for business and leisure travel, which is expected to drive growth in domestic and international passenger traffic. The airports contribute approximately £2bn (US$2.5bn) in gross value added to the UK economy per year and support more than 30,000 jobs across their supply chain.
AviAlliance will leverage its airport expertise to develop AGS Airports, enhance air connectivity, improve the passenger experience and support local communities. 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, it has a portfolio of four airports that together served 73 million passengers in 2023, an increase of more than 20% compared with 2022.
Gerhard Schroeder, managing director of AviAlliance, said, “Aberdeen, Glasgow and Southampton Airports provide vital connectivity for communities in Scotland and the southeast of England. As a seasoned airport investor and manager with in-depth industry expertise, AviAlliance will enable each airport to realize its 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.”
Sandiren Curthan, managing director and global head of infrastructure investments at PSP Investments, added, “PSP Investments is a significant investor across several sectors in Scotland and, more broadly, the United Kingdom, with over £10bn [US$12bn] of investments 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. Airports is a sector that 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 operates, recognizing the critical role that these airports play in supporting economic growth in Scotland and England.”
Macquarie’s total investments
AGS Airports was established as a 50:50 joint venture between Macquarie and Ferrovial following their 2014 acquisition of the airport portfolio from Heathrow Airport Holdings. A partnership approach with Ferrovial has enabled AGS Airports to invest £250m (US$315m) to deliver vital improvements, including the largest investment in Aberdeen International Airport’s capacity since its main terminal was opened in 1977. This £20m (US$25m) investment increased terminal space by 50% to accommodate enhanced security facilities, an increased retail offering, new areas for baggage reclaims, expanded business lounges, and new immigration and arrivals facilities.
The partnership also made a £9m (US$11m) investment to revamp infrastructure at Glasgow Airport to accommodate all wide-body aircraft, alongside improvements to a dedicated pick-up and drop-off facility, new car rental center, expanded security facilities, and improved retail and lounge options. Additionally, a £17m (US$21m) runway extension was completed at Southampton Airport, which opened in 2024, securing the airport’s future contribution to local communities and businesses across the Southeast and, importantly, enabling the airport to operate larger aircraft and diversify its airline base.
Overall, Macquarie has invested or arranged more than £60bn (US$75bn) in UK infrastructure over the past two decades and is supporting £20bn (US$25bn) of investment across its portfolio over the coming years to deliver improved energy, transportation, utilities, social and telecommunications infrastructure in England, Wales and Scotland.
Martin Bradley, head of infrastructure for Macquarie Asset Management in EMEA, stated, “Since 2014, we have worked in partnership with Ferrovial to support around £250m (US$260m) of investment by AGS Airports aimed at delivering a better experience for passengers traveling via Aberdeen, Glasgow and Southampton airports. Following this decade of investment, we are pleased to be passing the baton to AviAlliance to unlock the next phase of growth.
Andy Cliffe, CEO of AGS Airports, concluded, “Over the past 10 years, Macquarie and Ferrovial have played a central role in unlocking our full potential. Their close partnership with the teams across our three airports ensured we had the support to invest in our passenger offering while improving our operations. We are grateful for their close stewardship and look forward to continuing to develop our services and beneficial impact on passengers and communities across the regions of Aberdeen, Glasgow and Southampton.”
In related news, AGS Airports, which owns and operates Aberdeen, Glasgow and Southampton airports in the UK, recently confirmed that Ronald Leitch has been appointed as its chief operating officer (COO). Click here to read the full story.