OTPP Sells Stake in Copenhagen Airport; PSP Acquires AGS Airports

Benefits Canada reports Ontario Teachers’ selling ownership stake in Copenhagen airport, OMERS closes €1BN term notes offering:

The Ontario Teachers’ Pension Plan is selling its stake in Copenhagen Airports A/S to co-shareholder Arbejdmarkedets Tillægspension.

The Denmark-based investor has been a joint venture partner with the investment organization and co-owner of the airport since 2017. The financial details of the transaction weren’t disclosed.

“We would like to thank ATP for their collaboration and we look forward to seeing CPH continue to flourish in the future,” said Charles Thomazi, senior managing director of Europe, Middle East and Africa at the Ontario Teachers’, in a press release.

The Ontario Municipal Employees’ Retirement System is closing an offering of term notes worth €1 billion.

The notes, which carry a 10-year maturity rate, are priced at a yield of 3.25 per cent. The offering represents the third offering by the OMERS using European currency and was led by asset managers (55 per cent) and followed by treasuries and private banks class (19 per cent), central banks and official institutions (18 per cent) and pension, insurance and other (seven per cent).

In other news, the real estate arm of the Caisse de dépôt et placement du Québec is reporting it has reached 80 per cent rental rate for CIBC Square, its downtown Toronto office asset.

“The topping out of this cutting-edge building is a significant achievement, showcasing our commitment to excellence and our dedication to creating vibrant, sustainable and transit-oriented spaces that benefit tenants, partners and the community,” said Rana Ghorayeb, executive vice-president and head of real estate at the Caisse, in a press release.

The Public Sector Pension Investment Board’s wholly owned subsidiary AviAlliance has completed its acquisition of AGS Airports, the operator of U.K.-based Aberdeen, Glasgow and Southampton airports.

The total enterprise value of the transaction totalled £1.53 billion. In a press release, Richard Chang, managing director and head of Europe and Asia-Pacific and infrastructure investments at PSP Investments, said the investment organization is proud to increase its investment in the U.K.

“We believe that the operational expertise and track record of AviAlliance will deliver tangible benefit for AGS Airports and the communities it serves in Glasgow, Aberdeen and Southampton.”

The Canada Pension Plan Investment Board is confirming the inclusion of Cedar Leaf Capital, an Indigenous-owned investment dealer, to its syndicate of dealers.

“The inclusion of Cedar Leaf Capital enables us to further diversify our dealer base, reaffirming our commitment to the Canadian bond market,” said Sam Dorri, managing director of financing and balance sheet management, in a press release.

There are a bunch of stories all mixed into one article so I'm only going to focus on airport deals here.

Last week, OTPP issued a press release stating it had reached an agreement to sell stake in Copenhagen Airports to ATP: 

Copenhagen – Ontario Teachers’ Pension Plan Board (Ontario Teachers’) has reached an agreement to sell its stake in Copenhagen Airports A/S (CPH) to co-shareholder and Danish investor Arbejdmarkedets Tillægspension (ATP). Ontario Teachers’ and ATP have held a joint control stake in the airport since 2017.

Ontario Teachers’ has been an investor in CPH since 2011, when it acquired a joint control stake in the airports. Over the past 14 years, significant investments totalling almost DKK 18 billion have been made to modernise and expand CPH. The airport is currently undergoing the largest investment in its history, with a significant airside expansion project to facilitate future growth. The key focus of the investment over the period of our ownership has been to improve capacity and the passenger experience, and position CPH for sustainable long-term growth.

Highlights include:

  • Multiple new flight routes added, with CPH today providing more than 321 direct routes operated by over 60 airlines connecting travellers to over 165 destinations;
  • 30%+ growth in passengers, from 22.7 million in 2011 to almost 30 million at the end of 2024;
  • Multiple development projects including: the expansion of both Terminals 2 and 3; developing new piers to facilitate growth; runway widening to accommodate Airbus A380 aircraft; and a new hotel and conference facility;
  • Accreditation in the international Airport Carbon Accreditation (ACA) scheme since 2019 and on track to meet commitment for operations to become net zero by 2030; and
  • Working actively with the airport management team during the Covid pandemic, including a leading role with lenders and supporting CPH’s subsequent strong recovery.

Charles Thomazi, Senior Managing Director, Europe, Middle East and Africa (EMEA) at Ontario Teachers’ said:

“We are honoured to have been part of Copenhagen Airports’ growth and development for nearly 15 years. As they reach their 100th anniversary year, we are confident that Copenhagen Airports will continue playing their vital role in connecting Denmark to the world and driving economic growth. We would like to thank ATP for their collaboration and we look forward to seeing CPH continue to flourish in the future.”

The transaction is subject to the necessary regulatory clearances.

This has been a great airport to own for OTPP and it's worth reiterating this passage:

The key focus of the investment over the period of our ownership has been to improve capacity and the passenger experience, and position CPH for sustainable long-term growth.

Along with co-owner shareholder Arbejdmarkedets Tillægspension, they added a lot of value to Copenhagen Airports A/S since 2017 and ATP is wel positioned to take ownership of that asset now.

For its part, PSP Investments issued a press release last week stating it acquired AGS Airports via its airports platform AviAlliance:

  • Investment will support the growth of Aberdeen, Glasgow and Southampton airports
  • Ownership by experienced operator will enhance connectivity and improve passenger experience
  • Appointment of new CEO to continue driving growth

Düsseldorf, 28 January 2025 – AviAlliance, one of the world's leading private airport investors and operators, today announces the completion of its acquisition of AGS Airports, the operator of Aberdeen, Glasgow and Southampton airports from Ferrovial and Macquarie[1] for an enterprise value of £1.53 billion, having received all relevant regulatory approvals.

AviAlliance is a wholly-owned subsidiary of PSP Investments, one of Canada’s largest pension investors, which is a long-standing investor in UK infrastructure with majority stakes in the port operator Forth Ports, one of the UK’s largest port groups and Angel Trains, the largest rolling stock company in the UK.

Following the acquisition, AGS Airports will become part of AviAlliance - joining the company’s global airport network, which also includes stakes in Athens, Düsseldorf, Hamburg, and San Juan (Puerto Rico) airports.

AviAlliance additionally announces today the appointment of Kam Jandu as CEO of AGS Airports with immediate effect. Kam brings three decades of experience in senior roles in the aviation and travel industries, having most recently served as CEO of Budapest Airport.

Kam will succeed Andy Cliffe who departs AGS Airports by mutual consent, having made a major contribution to the business during his tenure. Andy has agreed to support Kam to ensure an orderly leadership transition. 

Gerhard Schroeder, Managing Director of AviAlliance, said: “We are delighted to formally welcome AGS Airports into the AviAlliance family and look forward to developing a constructive and long-lasting partnership with all three airports. Aberdeen, Glasgow and Southampton airports are excellent assets with strong growth potential that will benefit significantly from the forward-thinking exchange of expertise in growing connectivity, expanding passenger numbers and delivering superior passenger experience from across our world-class airport portfolio. I also wish to thank Andy for his excellent leadership of AGS Airports which has positioned the airports it operates for strong growth and look forward to working with Kam on the execution of our vision.”

Richard Chang, Managing Director and Head of Europe and Asia-Pacific, Infrastructure Investments at PSP Investments, said: “We are proud to add AGS Airports to our infrastructure portfolio, and to further increase our commitment to both Scotland and the wider United Kingdom. We believe that the operational expertise and track record of AviAlliance will deliver tangible benefit for AGS Airports and the communities it serves in Glasgow, Aberdeen, and Southampton.

Kam Jandu, incoming CEO of AGS Airports, said: “I am both delighted and grateful to have been given the opportunity to lead and support AGS Airports on the next exciting phase in their growth strategy. Aberdeen, Glasgow and Southampton airports offer unique propositions and catchment areas which present growth opportunities for airlines and other business partners alike. Working with the great people we have across the group and airports we aim to further improve their economic impact in a sustainable manner for the benefit of all stakeholders. I am looking forward to continuing the excellent achievements that have already been reached in this regard and to delivering the ambitious plans in the years ahead.”

Andy Cliffe, outgoing CEO of AGS Airports, said: “It has been my pleasure to lead AGS Airports for the past years as we successfully transformed the business into the world-class airport operator it is today focused on delivering the enormous growth potential of the group. I will look back fondly on my time as CEO and I look forward to working closely with Kam and AviAlliance during this transition period and wish the team every success as they lead this outstanding business into its next chapter.”

About AviAlliance
AviAlliance, a wholly-owned subsidiary of PSP Investments, is one of the world's leading private industrial airport investors and operators. The company participates in airport privatizations worldwide and acquires interests in airports. AviAlliance has an international airport network, currently managing stakes in the airports of Athens, Düsseldorf, Hamburg, and San Juan (Puerto Rico). In 2024, these four facilities together handled 79.9 million passengers. Visit avialliance.com for more information or follow us on LinkedIn.

About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investors with $264.9 billion of net assets under management as of March 31, 2024. It manages a diversified global portfolio composed of investments in capital markets, private equity, real estate, infrastructure, natural resources, and credit investments. Established in 1999, PSP Investments manages and invests amounts transferred to it by the Government of Canada for the pension plans of the federal public service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York, London and Hong Kong. For more information, visit investpsp.com or follow us on LinkedIn


About AGS Airports
AGS Airports owns and operates the primary airports serving Aberdeen, Glasgow and Southampton. These airports provide essential domestic and international connectivity to three important economic and population centres across the UK and serve more than 10.8 million passengers annually. The airports contribute approximately £2 billion in Gross Value Added to the UK economy per year and support more than 30,000 jobs across a sophisticated supply chain.

This is a great investment in Aberdeen, Glasgow and Southampton airports, one that will pay long-term dividends for PSP and its members.

It is worth noting airports have recovered nicely since the pandemic and travel is up all over the world so these are nice long-term investments with inflation-indexed cash flows.

World-class operators like AviAlliance know how to add value to their airports, although I have a few Greek friends of mine who think they need to make significant investments in Athens Airport to improve it.

Alright, busy day, all this tariff talk and negotiations gave me a headache.

Below, the latest news after President Trump agreed to postpone tariffs on Canada and Mexico for 30 days.

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