A significant stake in Newcastle International Airport is poised to enter the market, potentially commanding a valuation of up to £1 billion, with Saudi investors emerging as leading contenders in Britain’s latest airport ownership shuffle.
Investment banking giant JP Morgan has been tasked with orchestrating the sale of a 49 per cent shareholding currently held by Infrabridge, according to City sources. The remaining stake will continue to be controlled by local councils, maintaining a crucial public interest element in the regional transport hub.
Saudi Arabia’s Public Investment Fund (PIF), which already owns Newcastle United Football Club, stands as the frontrunner in the bidding process. The timing is particularly noteworthy as PIF recently secured a 37.6 per cent stake in Heathrow Airport alongside French investment partner Ardian.
The sale represents the fourth major regional airport transaction in recent months, following market activity at London City, Birmingham and Bristol airports. These facilities are currently being divested by the Ontario Teachers Pension Plan as part of their European portfolio restructuring, valued at approximately £10 billion.
Newcastle Airport’s financial performance underscores its attractive proposition, having generated £46 million in earnings before interest, taxes, depreciation and amortisation (EBITDA) in 2023. Industry valuations typically command multiples of 20 times EBITDA, supporting the projected £1 billion price tag.
The transaction occurs against a backdrop of robust recovery in UK aviation, with passenger numbers exceeding pre-pandemic forecasts. This trend has catalysed increased investor interest in British airport infrastructure, particularly from sovereign wealth funds and institutional investors seeking stable, long-term returns.
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