Australia Pacific Airports Corporation

Australia: Melbourne; Victoria and Launceston; Tasmania.

Acquired June 1997
UTA Ownership 8.70%
Description Australian Pacific Airports Corporation owns and operates Melbourne Airport and Launceston Airport. Melbourne Airport is Australia’s second largest international airport and is a key driver of Victoria’s economic growth. More than 25.2 million domestic and 9.9 million international passengers passed through Melbourne Airport during the 12 months to 30 June 2017. The airports currently operate under 50 year leases with options to extend for 49 years until final expiry in 2096.
Investment Rationale
  • Melbourne Airport is a key access point to Victoria and Australia for domestic and international travellers
  • The airport is subject to very low risk of substitution and competition
  • Frequent, high capacity routes between key Australian capital cities provides a low volatility traffic base
  • Light handed dual-till regulatory regime
  • Growth linked to the strength of the Victorian economy and its attractiveness as a tourist destination
  • Launceston Airport is the northern gateway for travel between Tasmania and mainland Australia
Key ESG Elements
  • In 2004, Melbourne Airport was the first Australian airport to achieve international certification of its Environmental Management System under AS/NZS ISO14001:2004
  • Continues to maintain 24 hour (curfew free) license to operate, on the basis of management of environmental and social issues
  • Monitors water quality through 70 groundwater bores and stormwater discharge sites across the footprint
  • Constructing 8 MW tri-generation plant onsite to further enhance energy efficiency
  • Partnering with local charities to provide over 150 scholarships for talented young people

Perth Airport

Australia: Perth; Western Australia.

Acquired June 1997
UTA Ownership 47.7%
Description Perth Airport is Australia’s fourth largest airport in terms of passenger traffic, and is the principal gateway to Western Australia and its significant resources sector. It is strategically located as one of Australia’s closest airports to South East Asia, Europe and Africa. More than 13 million passengers used the airport during the 12 months to 30 June 2017. The airport operates under a 50 year lease with the option to extend for 49 years to 2096.
Investment Rationale
  • Perth is one of the most remote cities in the world
  • The airport is subject to very low risk of substitution and competition
  • Light handed, dual-till regulatory regime
  • Extensive land bank available for aeronautical and non-aeronautical development
  • Growth linked to Western Australia’s resources and tourist sectors 
Key ESG Elements
  • Execute environmental land offsets program to enable further development of airport land
  • In partnership with Perth’s Curtin University, Perth Airport has commenced a study to explore innovative energy solutions for the next phase of its terminal building consolidation to improve productivity and reduce carbon emissions. Perth Airport is contributing $1.1 million in cash and in-kind support for the project which is expected to take three years to complete
  • Continue to provide monetary and in-kind support to a variety of local community causes