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Igneo Infrastructure Partners, a founding investor in Adelaide Airport since it was privatised in 1998, has sold its stake in the company in a deal that has been touted to be as high as $600 million.
While Igneo has no disclosed the buyers of its 15.26 per cent stake, media reports have indicated that they comprise existing investors IFM Investors and UniSuper.
Financial details of the sale have also been kept under wraps although the most recent financial report from the airport operator reveals it had total assets of $1.9 billion at the end of FY24.
Adelaide Airport is currently undergoing a $600 million upgrade as part of a five-year $1 billion capital expenditure program, which has led to estimates of a $4 billion valuation for the for the operating company.
Igneo, which also has an interest in Brisbane Airport Corporation, officially placed its interest in the Adelaide property on the market in June this year, engaging Barrenjoey Capital Partners to find a buyer.
The company today announced that it received notices from a group of existing shareholders exercising their pre-emptive rights over its shareholding.
Among the other existing shareholders in Adelaide Airport Limited are industry super fund HostPlus and Perth-based Perron Group.
The London-headquartered Igneo put its share up for sale following a strategic review of its portfolio that the investment group said considered its ability to meet client investment objectives.
“Our investment in Adelaide Airport Limited has been a great example of Igneo’s ‘buy to build’ investment philosophy,” says Danny Latham, head of Igneo Australia and New Zealand.
“We have been an investor in Adelaide Airport Limited since its privatisation in May 1998 and we are proud of what we have achieved over 27 years to deliver growth for the business and consistent investment returns for our clients.
“At an operational level, we have welcomed the opportunity to work closely with the management team and our fellow shareholders which has resulted in passenger numbers increasing from four million in 1998 to over 8.7 million in 2025, as well as EBITDA increase of over 11x during this time.”
Adelaide Airport Limited, which also owns Parafield Airport in the city’s north, posted EBITDA of $173.4 million in FY24, up 10.8 per cent from the previous year. The company delivered total dividends of $42.27 million to its investors.
Latham notes that through Igneo’s holding period, the investment delivered an internal rate of return of 14.4 per cent and 8.9x multiple on invested capital.
“Adelaide Airport Limited continues to be a well performing asset having achieved record passenger volumes and financial performance in FY25,” he says.
“We are pleased that its existing shareholders can continue to be a part of its growth journey.”
Adelaide Airport handled a record 8.7 million passengers in FY25, up 2.3 per cent from a year earlier. This included more than one million international passengers, which was up 8 per cent for the year as more airlines targeted Adelaide as a direct international destination.
Igneo is ultimately owned by Mitsubishi UFJ Financial Group through First Sentier Investors, which Mitsubishi acquired from the Commonwealth Bank of Australia (ASX: CBA) in 2019.
Barrenjoey acted as financial adviser to Igneo, with Gilbert + Tobin acting as legal adviser.
The sale of the group’s stake in the airport operator will settle this month.
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