Bahamas News

The Vancouver based company that has been tasked with transforming Lynden Pindling International Airport [LPIA] into a premier gateway has disposed of a substantial interest in the company.

YVR Airport Services has now entered a partnership with Citi Infrastructure Investors (CII) to jointly pursue the sourcing, funding and maximization of potential airport opportunities, according to the airport management company.

Last week, the Bahama Journal reported that YVRAS officials disclosed in a note that was posted in the Vancouver International Airport Authorit-y’s financial statements that it was in the process of disposing of a substantial interest in the company. However, there was no indication about who was interested in buying into the company.

The airport authority stated that if the transaction went through, the capital for YVRAS would be “substantially changed.”

Under the terms of the agreement, CII will also acquire 50 per cent of the shares of YVRAS and YVRAS will become CII’s exclusive platform for investing in airport assets, it was reported this week. The airport management company is relying on CII’s extensive global connections, long-term capital and an in-depth understanding of airport investment.

Officials also reported that CII is attracted to a partnership with Vancouver Airport Authority – the parent company for YVRAS – because of its innovation and operational excellence developed at its internationally recognized, award winning, North American gateway home airport of Vancouver International Airport (YVR).

In addition, YVRAS had amassed the reputation of being one of the pre-eminent managers of international airports with a successful track record in bidding on international airport assets.

“This is a new chapter in a great made-in-B.C. success story. In only 12 years, YVRAS has grown from three people and a bold idea into a major airport development company, operating 18 airports in seven countries,” said Graham Clarke, chair of Vancouver Airport Authority Board of Directors.

YVRAS, created in 1994, manages airports in seven countries, including The Bahamas, Canada, the Dominican Republic, Chile, Jamaica, Turks and Caicos and Cyprus. A few years ago, the company won the contract to redevelop LPIA which is the fourth busiest airport in the Caribbean region and handles approximately 3.2 million passengers annually. The airports in that portfolio recorded consolidated revenues of $433 million and combined passenger traffic of 29 million last year, it was reported.

“If British Columbia is to grow, then YVR must compete and win in the gateway battle for airlines and passengers - and to be the best at home, you need to be achieving out in the world,” said Larry Berg, president and chief executive officer of Vancouver Airport Authority.

“We are proud of how our subsidiary company has taken the excellence of B.C. and YVR into the international market. We see the partnership with CII as critical in taking YVRAS to the next stage of growth. We believe we have found a strong, complementary long-term partner that understands airport infrastructure and brings a lot to the table.”

Felicity Gates, co-head and partner of CII, said the company is seeking to establish a small number of best-in-class infrastructure platforms for growth and long-term investment through its alliance with the Vancouver company.

George Casey, president and chief executive officer of YVRAS called the move a welcome partnership that validates YVRAS position in the marketplace.

“CII is sponsored by one of the largest financial institutions in the world and their understanding of infrastructure and world capital markets will further support YVRAS as it matures to the next level,” he said.

The Nassau Airport Development Company Limited (NAD), in which YVRAS is heavily involved and through which it is driving the transformation of LPIA, was established to manage, operate, maintain and develop the airport under a 30-year agreement with the company.

NAD assumed responsibility for the airport on April 1, 2007.

NAD is responsible for introducing best practices, managing the development and construction of a new passenger terminal and related infrastructure estimated to be approximately US$400 million, enhancing commercial venues and improving the US Pre-Clearance facilities and services.

Source: Bahama Journal