The Ontario Teachers' Pension Plan's investment in airports continues to take flight.
The C$140.8 billion (US$131.1 billion) pension fund plans to acquire the 50% stake in Bristol International Airport held by Macquarie Group, giving Toronto-based OTPP 100% ownership of the Bristol, England, airport.
A deal for the additional stake has not yet been reached, but discussions are onging, said Deborah Allan, Ontario Teachers spokeswoman. If completed, the Bristol deal will be the latest airport-related investment for the pension fund. The OTPP already holds a 48% stake in Birmingham (England) Airport, 39% in Brussels Airport Co. and 30% in Copenhagen Airport.
The OTPP has been investing in airports, including Bristol, since 2002.
“We started building this platform several years ago and remain committed to it, and we intend to exercise our right of first offer on Bristol as part of that commitment,” Ms. Allan said.
“Airports are the ideal infrastructure asset for us,” she added. “They are regulated, have barriers to entry and provide stable cash flow linked to inflation.”
As to still more airport investments, Ms. Allan said, “Airports remain a focus for the future, but we have no details to discuss at this time.”
The airports are part of the OTPP's C$11.7 billion infrastructure portfolio, which returned 16.8% for the year ended Dec. 31, according to the pension fund's website.
