News Archive
UK construction giant set to buy Blackpool airport
Released on 06/05/2008
Balfour Beatty said today that Regional and City Airports (RCA), its specialist airport investment and development group, has agreed to acquire 95% of Blackpool International Airport in the UK for £14 million in cash.
The airport is being sold by Mar Properties, a large Northern Ireland-based property developer, and the transaction is subject to receiving the approval of the remaining minority shareholder, Blackpool Borough Council.
The council is believed to support the transaction. Approval is expected by 9 May 2008.
The airport is situated one mile south of Blackpool town centre and has road and rail links to the North West of England. Its current customers include Jet2.com, Ryanair and Manx2.com. The airport is forecast to handle about half a million passengers this year, flying 12 routes to the UK, Ireland, Isle of Man and mainland European destinations.
UK-based Balfour Beatty is an international engineering, construction, services and investment group. Its chief executive Ian Tyler said:
“Blackpool International is a well-located airport with the potential to become a thriving international gateway to Lancashire and Cumbria. We will work together with the airlines and our local partners to help increase its penetration within this core catchment area and to play its part in attracting inbound visitors to the region. We believe that our approach will deliver significant, sustained growth in passenger traffic at the airport and will generate important economic benefits for it and for Blackpool. Our aim is to develop Blackpool to be the airport of choice for residents, businesses and visitors of Lancashire and Cumbria.”
Peter Callow, leader of Blackpool Council, which owns a 5% stake in the airport, said:
“This is absolutely great news for Blackpool. The Airport has developed rapidly in recent years and I am confident that Balfour Beatty will be able to take it to an even higher level. I know that they have very exciting plans for the future which will see expansion of both flights and facilities. Clearly they have the contacts and capacity to deliver these aspirations which should mean growth for the whole area and more jobs for local people.”
This is not Balfour Beatty’s first airport. RCA acquired Exeter International Airport for £60 million in January 2007. Data from the Civil Aviation Authority (CAA) shows that Exeter is one of the fastest growing airports in the UK and the strongest growing airport in the South West, handling just over one million arriving and departing passengers in 2007.
Balfour Beatty Capital has raised over £7 billion of funding for its 30 privately-financed projects in which it has over £250 million of equity.
Balfour Beatty also has experience in airport infrastructure development. Its professional and technical services division has played a key role in the development programmes at Heathrow, Gatwick and the BAA Scottish Airports. Its construction and services subsidiaries have undertaken major airport projects at Heathrow, Gatwick, Stansted, Glasgow, Edinburgh, Hong Kong, Dubai and Miami.
Balfour Beatty’s PPP/PFI portfolio in the UK includes nine hospitals, seven school schemes (plus a technical education in Singapore), five road and three street lighting projects, the London Underground power system, a waste water scheme, a coastal anti-erosion scheme and Barking Power Station, which is non-PPP.
