IFM Adds to Airport Investments

Global fund manager IFM Investors became a minority shareholder of Vienna Airport to close out 2014. This adds to the firm’s large roster of global airport investments.

An indirect subsidiary of IFM Global Infrastructure Fund, Airports Group Europe now has a 29.9 percent ownership stake in Vienna Airport in Austria, after acquiring 6.279M ordinary bearer shares of the asset at the end of the offer’s acceptance period on Dec. 18.

A representative from IFM tells Privcap that one reason IFM thought the airport was a good investment was its strong management team, and its location.

“The airport benefits a strong customer base,” the representative says. “It acts as a hub to go on to destinations in Europe and Eastern Europe.” They added that there is a lot of modern infrastructure to be built and growth opportunities for the airport.

In a press release, Werner Kerschl, investment director of IFM Investors, says: “We received considerable interest from investors, and feel reassured that we made a fair and attractive offer…With over 19 years of experience in the infrastructure sector, IFM can offer its expertise and support to Vienna Airport and its stakeholders for the long-term development.”

IFM began investing in airports 17 years ago in Melbourne, Australia, after becoming interested in that type of real asset a couple of years before, says the representative. Since then, the fund manager has invested in 13 airports other than the one in Vienna, with five of those in Australia, and another in the UK’s second-largest airport group, Manchester Airports Group.

The investment was deemed a successful first airport investment in Austria.

“They got the piece that they wanted, 29.9 [percent],” says the IFM representative. “They were pleased with how things went.”