MIRA shortlists Hobart Airport bids

09 August 2019 - 12:00 am UTC

Macquarie Infrastructure and Real Assets (MIRA) has shortlisted four groups for the sale of a 50.01% stake in Hobart Airport, several sources familiar with the situation said.

 

According to the sources, advisor Credit Suisse this week contacted the parties to invite them into the data room, including, UniSuper, QIC, Super funds Cbus and HESTA, and Vinci.

 

Binding bids are due by end-September.

 

Schiphol and ICG had lodged indicative bids but did not make it to the second round, three of the sources said.

 

According to two buy-side sources, the bids implied multiples of above 20x earnings or more than AUD 600m.

 

​​​Marketing materials sent to potential bidders in May said EBITDA for the airport was AUD 33m (USD 23m) for the financial year ended 30 June 2018.

 

MIRA was bought in at 2007 when EBITDA was AUD 16m and has since delivered compounded annual growth of 7.6%. The airport had AUD 195m in debt facilities, of which AUD 20m is undrawn, and has cash-on-hand of AUD 18m.

 

Since 2007, passenger numbers have grown at one of the fastest rates for an Australian airport – from 1.8 million to 2.6 million, according to the Bureau of Infrastructure and Resource Economics.

 

Hobart Airport was privatised by the federal government in 1998 under a 99-year land lease, made up of a 50-year lease to 2048, with an option to extend for another 49 years to 2097.

 

UniSuper, QIC, Cbus, Hesta, Vinci, and ICG did not respond to requests for comment by the time of publication. MIRA and Schipol declined to comment.

 

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