SUNSHINE COAST AIRPORT

Transport

ASSET DESCRIPTION

  • Large regional airport servicing the rapidly growing Sunshine Coast region
  • 99 year lease (to 2116) with Sunshine Coast Regional Council
  • 100% equity interest including full Board control
  • Palisade will make an upfront payment and contribute a fixed $290m sum towards the construction of a new 2.45km runway (payable in 2022)
  • The new runway will remove operational constraints on the existing runway, improve safety and facilitate potential long haul routes within Australia and internationally

INVESTMENT FUNDAMENTALS

  • The wider Sunshine Coast region comprises ~400,000 residents, with forecast population and economic growth significantly above the national average
  • Diverse revenue stream from aeronautical, terminal and property income
  • Expanding service coverage from the domestic airlines, with further route development opportunities in the pipeline
  • Revenue potential from land bank located within the airport site

 KEY RISKS AND MITIGATION

  • Demand and pricing risk managed through extensive due diligence conducted by Palisade, with assistance from our advisor team
  • Passenger spend (terminal retail, car rentals and car parking) impacted by passenger numbers
  • Runway construction process to be managed by Council