North America: JetBlue selects consortium for JFK redevelopment project

26 March 2018 - 12:00 am UTC

JetBlue Airways has selected Vantage Airport Group and RXR Realty LLC to lead its multi-billion dollar terminal expansion at John F. Kennedy International Airport (JFK).

The group, named JFK Millennium Partners, beat out other entities shortlisted for the project, including Oaktree Capital and Ferrovial Airports.

As reported, JetBlue is considering a DBFOM for the development of an integrated complex that will link Terminals 5, 6 and 7 at JFK. The winning group will win the right to negotiate a final agreement with the Port Authority of New York and New Jersey (PANYNJ), the airport’s operator.

A JetBlue spokesperson said the project will be funded largely by JFK Millennium Partners but declined to comment on whether the consortium had additional equity owners or advisors. “We believe this terminal development will ultimately help maximize the value of our real estate holdings at JFK – creating more revenue for JetBlue. That’s a good investment for all of us as well as our shareholders,” the spokesperson added.

The Vancouver-based Vantage is no stranger to the New York airport scene; it was one of the three equity partners in the USD 4bn redevelopment of LaGuardia Central Terminal B in 2016. The other partners in the project were Meridiam Infrastructure North America II and Skanska.

As reported, New York Governor Andrew Cuomo indicated that private capital would play a significant role in the proposed USD 10bn redevelopment of the JFK airport. Cuomo, who said the airport had fallen behind other world-class airports, said the redevelopment would cost an estimated USD 7bn-USD 8bn, with other USD 2bn in estimated costs to improve highway access to the airport.