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An aviation researcher, writer, aviation participant, pilot & agricultural researcher. Author of over 35 scientific publications world wide.

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Bankstown airport for sale??

Bankstown airport for sale?? September 2015

There are some problems with this, not withstanding the issue of the use for aviation.

  1. Airports in Australia;
  2. Airports

  3. Bankstown- It’s “future” – Aviation must prevail;

  4. History of Bankstown and objections to lease/ sale

  5. Bankstown Airport – What is the legal position??

  6. Cost of CASA moving from Bankstown to Sydney city office – A loss of money acknowledged – What did #casa know?

  7. Flooding;

And from this morning’s AFR [see at base, Essendon’s process in comparison]:


 

Altis frontrunner for $200m+ Bankstown,Camden airports

Bankstown Airport, one of two airports Altis intends to buy.
Bankstown Airport, one of two airports Altis intends to buy.

Fast-growing real estate investment group Altis Property Partners has fended off other parties vying for the Bankstown and Camden airports in Sydney with a knockout bid exceeding $200 million.

Owned by a consortium known as BAC Holdco, which includes Mirvac Group, AustralianSuper and Colonial First State, the two airports were quietly put up for sale in May.

Huge interest was expressed in the off-market campaign for the two sites, which generate an annual rental income of more than $20 million. Early expectations had been for closer to $195 million but it is understood final bids came in well above that number.

Sources said Altis, a rising market player in Australia’s commercial property sector, has entered due diligence for both properties. While about 90 per cent of the income comes from property, there is an infrastructure and development play to the assets that has additional appeal for Altis.

 Grant Samuel’s Damien Elias and Salih Harman, and Colliers International’s Gavin Bishop and Malcom Tyson, were appointed to advise on the off-market sale although the parties declined to comment. Altis also declined to comment.

Now a better time to sell

Both Camden and Bankstown airports were privatised in 2003 and are held under long term leases with the Australian government, with more than 80 years still remaining. A sale of both airports was called off in late 2012 after shareholders decided to hold out for a better selling environment.  Over the past few years the airports have had an average of vacancy of only 1 per cent.

Bankstown is the fifth-busiest airport and third most active non-passenger airport in Australia, and makes up the bulk of the revenue. Several expansion projects are in the works for some existing tenants. The site has 12.7 hectares of surplus land.

Bankstown is going to be one of the big winners of big ticket spending on major road and rail projects by the NSW government. It is also adjacent to a development proposed by Bob Ell’s Leda Group which could open up more opportunities for Altis should it buy airport.

Altis has been an active buyer along Australia’s eastern seaboard since starting up in 2008. The private equity group most recently purchased the Space 207 complex in Sydney’s St Leonards from Primewest and Valad Property Group for about $170 million.  It is also one of the shortlisted bidders for the $200 million plus Australian Technology Park in inner-city Sydney


Bankstown and Camden airports up on offer

Banktown airport is the fifth busiest in Australia.
Camden airport has more than 8 hectares of surplus land. Bob Pearce

by Mercedes RuehlA consortium including Mirvac Group, AustralianSuper and Colonial First State has quietly put the Camden and Bankstown airports up for sale with price expectations exceeding $195 million.

A sale of both airports was called off in late 2012 after shareholders decided to hold out for a better sale environment.

Now the two sites, which generate an annual rental income of more than $20 million, are again being offered for sale as a package deal as well as a development opportunity. Spanning 509 hectares in total, there is the potential for more than 40 hectares of surplus development land.

The owner, known as BAC Holdco, has appointed Colliers International’s Gavin Bishop and Malcom Tyson and Grant Samuel’s Damien Elias and Salih Harman to advise on the off-market sale although the parties declined to comment.

Both airports were privatised in 2003 and are held under long term leases with the Australian government, with 82 years still remaining. In total across both Camden and Bankstown there are more than 175 tenants, half of those are related to the aviation industry. Over the last few years the airports have had an average of vacancy of only 1 per cent and the weighted average lease expiry exceeds six years.

Interested parties are being asked to submit non-binding indicative offers after which a shortlist of potential buyers will most likely be drawn up to undertake detailed due diligence before making a final offer.

Bankstown, the fifth busiest airport in Australia, makes up the bulk of the revenue. Several expansion projects are in the works for some existing tenants. In addition to that there is 12.7 hectares of surplus land on the site currently and potential for a further 19 hectares. Camden has a little over 8 hectares of surplus development land.

The two airports were purchased as part of a package along with Hoxton Park airport in November 2003 for $211 million.


Melbourne’s Essendon Airport invests $20m to lure the growing private jet market

The Max Beck and Lindsay Fox-owned Essendon Airport is planning a $20m investment to lure more of the super-rich and their private jets.

For decades Essendon Airport has lived in the shadow of the more glamorous Tullamarine Airport, which replaced Essendon as Melbourne’s international passenger airport in 1970. However, Essendon has quietly been building up its role as a base for corporate jets. Now it is spending $12 million on two new hangers and a further $8 million on a runway overlay as it seeks to hold its position as the country’s biggest corporate jet base.

Its investment in new hangers, each capable of holding two large jets, such as a Gulfstream 650, is underpinned by lease agreements of 15 years with two owners. With the corporate air game thriving on discretion, the airport isn’t willing to say who the tenants are.

Private jets take off

Essendon Airport chief executive Chris Cowan is tapping into the growing appetite for private jets.
Essendon Airport chief executive Chris Cowan is tapping into the growing appetite for private jets. Luis Ascui

Essendon Airport chief executive Chris Cowan says Essendon is playing a different role in the private jet market from businessman Paul Little, who earlier this year said he would build a $30m private jet terminal at Tullamarine.

“He’s running a hanger and a facility that will service jets,” says Cowan. “We’re running a whole airport.”  Essendon Airport is also a base for regional passenger flights and emergency services such as police, ambulance and the Royal Flying Doctor Service.

With jet maker Bombardier predicting that the private jet fleet in China alone is likely to quadruple from the current 33 to 1,275 aircraft by 2023, Essendon and Tullamarine are both tapping a growing appetite for corporate air travel that Melbourne is poised to exploit better than Sydney.

“Sydney (airport) has very little room for corporate” aircraft, Cowan says. The NSW capital’s second airport at Bankstown, is too far out to offer owners a convenient service, he argues.

Essendon Airport touts itself as the first choice for owners who want to base their private jets there because it is 6km closer to the Melbourne CBD than Tullamarine and has more space to hanger private jets. However, unlike Tullamarine Essendon Airport, which neighbours the residential suburbs of Strathmore, Pascoe Vale and Essendon North, is subject to a curfew between 11pm and 6am, and is limited to jets up to 45000 tonnes in weight.

The curfew doesn’t affect Essendon’s clients and the convenience of a quieter airport makes it a better proposition, Cowan argues. Essendon Airport has an average two-and-a-half movements, whether take-offs or landings, by fixed-wing aircraft every hour, while Tullamarine has one every 45 seconds. This means they can get airbound much more quickly in Essendon, he says.

The number of jet movements at Essendon rose by 800 to 2100 between 2012 and 2001, when Fox and Beck acquired the facilities from the federal government, reflecting the growth in private jets as well as regional passenger services. The number of helicopter movements more than doubled over that period to 17371 from 7960.

The growth came as the number of general aviation movements – typically by individually owned small propeller planes – dropped by more than a third to 33504 from 52000. This gives Essendon more space to accommodate higher-yielding corporate jet market, Essendon Airport’s general manager Graeme Ware, says.

“There’s massive capacity to grow,” he says.


Exempt small airports from federal regulation, urges lobby group

Smaller airports ‘play a key role in the economy’, says the AAA. 
Smaller airports ‘play a key role in the economy’, says the AAA.  Photo: Kirk Gilmour

Australia’s suburban airports, such as Sydney’s Bankstown, Melbourne’s Essendon and Perth’s Jandakot, should be exempt from expensive federal laws governing the much larger main city airports, says the Australian Airports Association.

The airports’ lobby group argues the smaller airports play a key role in the economy through private, corporate, recreational, medical and agriculture aviation but suffer from an undue financial burden.

The group wants the metro airports released from requirements such as filing a new 20-year development plan every five years, for public comment periods to be shortened and for new master plans to be approved or rejected more quickly.

“Compliance with [Commonwealth] requirements is very expensive – and imposes a disproportionately and very heavy burden on metro airports than it does on the much, much larger primary capital city airports,” a paper to be released at the association’s annual conference on Monday says.

“This imposes a significant compliance burden on metro airport ­operators, including in areas such as master planning and approval for ­on-airport developments, right down to regulations around the sale of lotto tickets at airport news agencies and the approvals required to carry out minor capital works,” Airports ­Association chief executive Caroline Wilkie said.

The metro airports, which include Camden, Archerfield, Moorabbin and Parafield are very busy.

Jandakot and Moorabbin had more take-offs and landings than Brisbane Airport in the last financial year.

Each of the suburban airports support flying schools and play an important role in pilot training. Emergency services use the airports for medical and firefighting purposes.

The group said it was committed to working with the government and ­relevant agencies to address the regulatory barriers that were impeding growth and efficient operation of the metro airports.

“Even though the metro airports may not see great numbers of arriving and departing regular public transport passengers, they do enable a wide range of other aviation activity that is of vital significance,” the association said.

 The Australian Financial Review