Ferrovial seeking New York JFK deal and agrees to buy stake in Dalaman Airport

Ferrovial Airports is about to widen its international portfolio after entering negotiations to secure a stake in the consortium responsible for building the new $9.5 billion Terminal One at New York JFK and agreeing to acquire a major interest in Dalaman Airport in Turkey.

It announced today that it has reached an “exclusivity agreement” with Carlyle to acquire 96% of its stake in the New Terminal One (NTO) consortium appointed to design, build and operate the new Terminal One at New York’s John F Kennedy International Airport.

Carlyle holds a 51% stake in NTO whose key financial partners also include JLC Infrastructure and Ullico.

Reach Airports – a joint venture between Munich Airport International and CAG Holdings – is the operating and technical services partner to the consortium.

Ferrovial states that closing the deal is “subject to the usual conditions for these type of transactions”, including gaining the approval of Port Authority of New York and New Jersey (PANYNJ).

According to PANYNJ, the new 2.4 million square foot international terminal has a price tag of $9.5 billion and will anchor the south side of New York JFK.

Being funded and developed by The New Terminal One (NTO) consortium, the project will be built in phases and is expected to create more than 10,000 jobs, becoming the fourth major terminal project announced by the Port Authority as part of a complete transformation of JFK into a “world-class airport worthy of New York and the region”.

When completed, the new Terminal One, which will ultimately have 23 gates, will be the largest international terminal at JFK and aspires to be among the top rated airport terminals in the world.

Elsewhere, Ferrovial is to pay €140 million to Turkish infrastructure company YDA Group to acquire a 60% stake in the company that holds the concession to operate Dalaman International Airport until 2042.

The YDA Group, which has been operating the asset since 2006 and will retain a 40% stake, has undertaken major upgrades to the airport’s facilities that included the opening of a new international terminal in 2018.

Completion of the deal is contingent upon the customary approvals for this type of transaction, including clearance from the Turkish authorities. It is expected to be completed in the first half of 2022.

Under the terms of the existing concession agreement, fees per passenger are set and collected in euros, with the result that the bulk of the airport’s revenues are in that currency.

“This is a unique opportunity to diversify our airport portfolio in an area that has become a fast-growing destination in Turkey for international tourism,” enthused Luke Bugeja, CEO of Ferrovial Airports.

“YDA Group has extensive experience with building and operating infrastructures under the P3 formula in Turkey, making it the ideal partner for this project. Ferrovial continues to advance without losing sight of opportunities in our strategic markets.”

While the YDA Group chairman, Hüseyin Arslan, notes that he is delighted to welcome Ferrovial as a partner in the Dalaman concession.

“This strategic alliance represents a unique opportunity to bring together the combined expertise of both companies in the Turkish aviation sector,” said Arslan.

“The synergies derived from our geographic complementarity will connect our customers to new destinations, while offering significant growth potential for both Dalaman and other markets.

“We are convinced that this partnership between two groups with a global presence in the aviation business will further contribute to our success.”

Dalaman Airport is located on the Turkish Riviera, one of the most attractive tourist areas in Turkey and the Mediterranean, with numerous cultural, sports and leisure facilities.

Before the pandemic, it was handling five million passengers per year, most of them international, having increased by 78% since 2006, and it ranks fourth in Turkey in terms of international passenger numbers.