Aecon Group Inc. announced that it has entered into an agreement with Connor, Clark & Lunn Infrastructure to sell a 49.9 per cent minority interest in the L.F. Wade International Airport (Bermuda International Airport) concessionaire, Bermuda Skyport Corporation Limited, for US$128.5 million.
Aecon Concessions will retain the management contract for the airport and remain the controlling shareholder of Skyport, owning a 50.1 per cent interest.
“This transaction highlights the value of the Bermuda International Airport concession and underlines the contribution of the Concessions’ portfolio of projects to Aecon,” said Jean-Louis Servranckx, president and CEO, Aecon Group Inc. “Aecon continues to target a prudent balance sheet while preserving capital for other long-term growth and concession opportunities.”
CC&L Infrastructure is an affiliate of Connor, Clark & Lunn Financial Group, a Canadian asset management firm with over C$100 billion of financial assets under management. CC&L Infrastructure brings significant experience partnering with international and local developers, operators, and management teams with over 90 infrastructure projects in North America and other select creditworthy jurisdictions.
“We are excited to expand to a new sector and geography with the addition of this interest in a world-class airport,” said Matt O’Brien, president of CC&L Infrastructure. “This investment is consistent with our strategy of investing in high-quality, long-duration assets in creditworthy jurisdictions. The L.F. Wade International Airport is an excellent example of a resilient, durable asset with potential for growth as passenger traffic recovers in the wake of COVID-19 – providing an attractive complement to our existing, well-diversified portfolio of infrastructure assets.”
Skyport is a special-purpose company owned by Aecon Concessions, responsible for the airport’s operations, maintenance and commercial functions, as well as coordinating the overall delivery of the Bermuda International Airport Redevelopment Project over a 30-year concession term that commenced in 2017. Under a Government-to-Government/Public-Private Partnership (P3) model, Aecon worked with the Canadian Commercial Corporation and the Government of Bermuda to develop, finance, design, build, operate and now maintain the new passenger terminal building, which opened in December of 2020.
“We are very pleased to welcome CC&L Infrastructure as a financial partner and look forward to working together to continue to deliver value to Bermuda through this award-winning airport,” said Steve Nackan, EVP and president, Aecon Concessions. “This partnership demonstrates investor confidence in the future of Bermuda’s economy, including post-pandemic recovery and tourism growth.”
Featured image: (CNW Group/Aecon Group Inc.)