KKR and Skip Capital: Acquiring Queensland Airports for Long-Term Growth

KKR, a leading global investment firm, and Skip Capital, an Australian private investment company, have announced their intention to acquire a majority stake in Queensland Airports. This strategic move aligns with both firms' long-term infrastructure investment strategies and holds significant potential for growth and innovation.

Queensland Airports, which operates Gold Coast, Townsville, Longreach, and Mount Isa airports, serves 39 domestic and six international routes, with nearly 66,700 annual aircraft movements. The acquisition presents an opportunity for KKR and Skip Capital to invest in a high-quality asset that provides critical services in a resilient market with strong macro tailwinds.

Andrew Jennings, Managing Director & Head of Australia and New Zealand (ANZ) Infrastructure at KKR, stated, "Our investment in Queensland Airports is a unique opportunity to acquire a high-quality asset that provides critical services in a resilient market with strong macro tailwinds. Queensland Airports plays an important role in connecting Queensland communities to the rest of Australia and beyond. We look forward to collaborating with the Skip Essential Infrastructure Fund, Perron Group, and the management team to drive growth initiatives to better serve passengers from Australia and abroad."

KKR's investment in Queensland Airports is part of its Asia Pacific Infrastructure Investors II Fund, following its announcement in June 2024 at the Indo-Pacific Partnership for Prosperity to mobilise infrastructure in the Indo-Pacific region. Past investments in ANZ infrastructure have included Spark Infrastructure and Ritchies Transport.

Skip Capital CEO and founder Kim Jackson said, "The Skip Essential Infrastructure Fund is proud to back the Gold Coast, Townsville, Longreach, and Mt Isa airports. Alongside delivering critical transport into one of Australia's highest growth corridors of the Gold Coast, we are excited about our plans to lift the airport's offering for residents and tourists, and drive energy innovation across the group."

The acquisition is expected to close in late 2024, subject to customary conditions including regulatory approvals. Financial details were not disclosed. KKR and the Skip Essential Infrastructure Fund were advised by RBC Capital Markets as financial advisor and Gilbert + Tobin as legal counsel.

The acquisition of Queensland Airports by KKR and Skip Capital is poised to enhance regional connectivity and economic development in Queensland communities. By driving growth initiatives and energy innovation, the consortium aims to better serve passengers and create value for stakeholders. As both firms continue to invest in high-quality infrastructure assets, this acquisition further solidifies their commitment to long-term growth and success in the Asia Pacific region.