Project

Coffs Harbour Airport

PROJECT STATUS
Under Delivery
Coffs Harbour Airport

Coffs Harbour City Council is seeking a long-term lease arrangement for the Coffs Harbour Airport, with a private consortium to oversee day-to-day management, operation and investment of the airport, with ownership to be retained by the Council. Overheads and ongoing operating and maintenance costs which will be borne by the airport lessee.

The airport lessee is expected to provide investment into airport services, enabling increased flight frequency, additional routes, and enable fast-tracked development of the Airport Enterprise Park. The Council is also looking to progress future international and freight opportunities through the long-term lease.

Key Dates

Dec 2018 Project Announced
Jun 2020 Tender for binding bids commenced
Jul 2020 Tender for binding bids closed
Aug 2020 Negotiations commence with preferred bidder
Dec 2020 Contract Award
Jun 2021 50-year lease commenced

Procurement

Procuring Agency: Coffs Harbour City Council
Successful Tenderer: Palisade Investment Partners
Adviser (Govt): Herbert Smith Freehills (Legal)
Related contracts:
Commercial Advisor - Coffs Harbour City Council
Successful Tenderer - KPMG Real Estate Advisory

Financial Advisor - Palisade Investment Partners
Successful Tenderer - RBC Capital Markets

Legal Advisor - Coffs Harbour City Council
Successful Tenderer - Ashurst

Legal Advisor - Palisade Investment Partners
Successful Tenderer - Herbert Smith Freehills

PROJECT HISTORY

Dec 2018 Council resolved to progress the Airport Lease Model for the airport to the next stages of due diligence and an expression of interest for non-binding bids.
Nov 2019 Non-binding bids were evaluated by the Council.
Dec 2019 Initial binding bid phase commenced.
Jun 2020 Binding bid phase formally recommenced after the procurement process was put on hold for six months due to COVID-19.
Sep 2020 Coffs Harbour City Council voted to progress with negotiations for a long-term lease of Coffs Harbour Airport in line with the recommended bidder from a Binding Bids Evaluation Report. The preferred bidder was not announced.
Nov 2020 Coffs Harbour City Council voted to approve the signing of a lease agreement with the preferred tenderer. A motion to rescind the decision was lost in early December. The preferred tenderer, and lease term are expected to be disclosed once contract close is achieved.
Dec 2020 Coffs Harbour City Council announced Palisade Investment Partners as their commercial operating partner for the lease of the Airport and development of the adjoining employment precinct on a 50-year lease, with an additional 49-year option.