Sunshine Coast Airport Lease




PROJECT
PIPELINE
STATUS

Prospective pipeline

Credibly proposed

Announced

Under procurement

Preferred bidder announced

Recently closed
Sunshine Coast Airport Lease
STATUS

Prospective pipeline

Greenfield (construction) or brownfield (government asset divestment) projects needed or likely to occur within the next five years, but is not formally proposed by a state, territory or major local government.

Credibly proposed

The project or divestment is supported by a state, territory or major local government, is subject to studies or other processes (such as pre-feasibility or scoping studies or business case development), and is likely to proceed to formal announcement.   

Announced

The project has a firm commitment and timeline from a state, territory or major local government, but has not yet entered the market.

Under procurement

The project or transaction is under procurement (such as a call for Expressions of Interest, requests for tender, or another offer to the market).

Preferred bidder announced

A preferred bidder has been selected and is in exclusive negotiations.

Recently closed

Projects that have progressed to contractual close remain on ANZIP for 12 months.

ANZIP is focused only on major infrastructure activity, above the following thresholds:

Australia

Construction projects: > AUD$300m

Investable greenfield & brownfield: > AUD$100m

New Zealand

All greenfield and brownfield projects and divestments: > NZD $100 million


STATUS: Recently closed
VALUE: $605M AUD
SECTOR: Other transport
JURISDICTION: QLD
TYPE: Brownfield

Sunshine Coast Airport is the gateway airport to tourist destinations in Queensland with services connecting the Sunshine Coast with Sydney, Melbourne and Adelaide, and with seasonal international services to New Zealand.

In 2015/16, the airport served 960,000 passengers after having grown 13 per cent over the past 12 months.

In February 2017, Sunshine Coast Council, the airport’s owners, reached an agreement with Palisade Investment Partners for a 99 year operating lease. The deal is worth approximately $605 million to the Council, which includes payments from Palisade for:

  • $82 million for 99 year lease;
  • a fixed payment of $290m following airport expansion project completion, which is expected in 2022; and
  • annual rental payments which equate to five per cent of total revenue (estimated value of $205m over 99 years).

The agreement will see Sunshine Coast Council continue to facilitate the planned works involving construction of a new runway, apron expansion and related infrastructure by 2020. Palisade will be responsible for future terminal development (further reducing requried Council contributions of $28 million), as well for negotiations with airlines to expand international and domestic routes.

Palisade is expected to take control of the airport's management, staff and non-land assets in September 2017.


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Government sponsors

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Supporting agencies

 
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