Good evening,

Almost a year after Queensland Airports Limited’s shareholders called in bankers to sell a 74.25 per cent stake in the $140 million-a-year portfolio that includes airports at Gold Coast, Townsville, Mount Isa and Longreach, the auction is officially under way.

Street Talk understands sell-side advisers Barrenjoey and Macquarie Capital began mailing out process letters for the sale process at the weekend. Prospective bidders have been told non-binding indicative offers will be due in late July.

The auction’s had a few false starts, as this column has detailed. But, with QAL’s internal restructure complete and a deadline for first-round offers pencilled in, it’s time for bidders to start thinking seriously about diligence and funding requirements.

As reported by Street Talk, Sydney Airport investor GIP has agreed to team up with ASX-listed property landlord Dexus. The pairing will duke it out with French infrastructure giant Vinci, which was an underbidder at Hobart Airport in 2019. Private equity giant KKR has also signed up to bid with Scott Farquhar and Kim Jackson’s Skip Capital.

Others that would be thinking hard about the up-for-grabs airport portfolio include US investor Stonepeak and local Palisade Investment Partners.

Of note, any foreign buyer hoping to mount a bid must secure a local partner, thanks to the Airports Act requirement of at least 51 per cent Australian ownership for local airports.

Read the full story tomorrow and more on the Street Talk page.

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