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Abu Dhabi, UAESunday 9 December 2018

Invest AD sells 38% stake in company operating Jordan's international airport

AIG runs concession that developed the airport

Invest AD sells stake in Jordan’s Queen Alia International Airport concessionaire. Courtesy Invest AD
Invest AD sells stake in Jordan’s Queen Alia International Airport concessionaire. Courtesy Invest AD

Abu Dhabi asset manager Invest AD sold its 38 per cent stake in Airport International Group, the concessionaire that developed and operates Jordan’s Queen Alia International Airport, for $230 million to Groupe ADP, a Paris-based airport operator.

“Over the last decade Invest AD has played a key role in this landmark public private partnership project, which has promoted economic growth and the tourism industry in Jordan,” said Faras Al Rahami, chief executive officer of Invest AD.

“Our legacy is a new state-of-the-art passenger terminal that has enhanced capacity, comfort and services significantly, and allowed a doubling of passenger numbers since 2007.”

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As well as purchasing Invest AD’s stake, Groupe ADP also purchased stakes of AIG owned by Noor Financial Investment Company, Joannou & Parakevaides and some of those owned by Edgo. The details of the stake sales of the other companies apart from Invest AD weren’t stated.

The purchases by Groupe ADP takes the company’s ownership of AIG to 51 per cent from 9.5 per cent. The other shareholders after the transaction are Edgo, Meridiam and IDB Infrastructure Fund II.

AIG’s annual passenger numbers have more than doubled to 7.9m passengers in 2017 from 3.8m passengers in 2007 when AIG was awarded a 25-year build-operate-transfer concession for the airport in a competitive tender process.

AIG oversaw an extensive capital investment program over the last 10 years, including the construction of a new terminal, designed by the celebrated architect Norman Foster, which opened in 2013. A further expansion was made in 2016 which raised the passenger capacity to 12 million passengers. In 2007, it was 3.5m. The airport now has a total of 25 gates and can accommodate Airbus A380 passenger airplanes, the world’s biggest.

The concessionaire also built new business lounges, duty free areas, and fashion, retail, food and beverage spaces. It also recently renovated the airport’s second runway.