APAC: Changi, Mitsubishi consortium preferred bidder for Fukuoka Airport

16 May 2018 - 12:00 am UTC

Fukuoka Airport Holdings has been selected as the preferred bidder for the 30-year concession of Japan’s fourth busiest airport MLIT said on Wednesday (16 May).

The consortium includes Singapore’s Changi Airports International and Japanese trading house Mitsubishi Corp along with a number of Fukuoka-based companies including Kyushu Electric Power and railway operator Nishi-Nippon Railroad.

It scored 169.7 out of 200 points in the second and final round of screening according to a release from the Ministry of Land, Infrastructure, Transport and Tourism (MLIT).

The two other shortlisted bidders were:

-a Manchester Airports Group-Tokyo Tatemono which scored 151.8 points;

-a Macquarie Capital-Daiwa House Industry consortium which scored 149.0 points.

The minimum concession fee was initially set at JPY 161bn (UD 1.46bn) but reportedly rose to over JPY 400bn in the final screening.

The Fukuoka Airport Holdings consortium is due to sign a basic accord for the concession in June.

Fukuoka Airport benefits from its prime location close to the city’s downtown area and its potential to expand as a hub airport.

It is a 15-minute subway ride from the city’s downtown area. In contrast, many of Japan’s 97 airports are located a long way away from densely populated downtown areas.  

Investors have keenly watched the tenders for the Fukuoka Airport concession along with the bundle of seven airports in Hokkaido. Both have seen the advent of locally-based entities joining forces with experienced players to form consortia.

A consortium led by Hokkaido Airport Terminal (HKK) has already been formed to bid for Hokkaido concession. The team also includes the Development Bank of Japan, Mitsubishi Estate and railway operator Tokyu Corp.   

Japanese leasing giant Orix also aims to bid with Vinci Airports for the concession while ADP International is understood to be finalizing its consortium.

First rounds bids are due for the Hokkaido bundle concession on 16 August.

Fukuoka Airport