Aecon Completes Sale Of 49.9% Of Skyport
Aecon Group Inc. announced the “closing of the previously disclosed agreement with Connor, Clark & Lunn Infrastructure to sell a 49.9% interest in the L.F. Wade International Airport [Bermuda International Airport] concessionaire, Bermuda Skyport Corporation Limited.”
“The final sale price was US$120 million following certain closing adjustments,” the company said. “Aecon Concessions will retain the management contract for the airport and remain the controlling shareholder of Skyport, owning a 50.1% interest.”
So Bermuda Skyport Corporation Limited, which has leased the airport for 30 years is valued at $240 million. Interesting.
So a properly built and managed airport has an upside of around $7M a year.
If PLP had built it, the debt would have been on $350M at 4% = $14m cost per year
The airport would run at a loss and we would still have to find $350M to pay back.
OBA Airport was actually an amazing deal for Bermuda and Bermudians.
I agree on everything accept the restaurant up top when departing. It’s the worst spot in the entire Atlantic and that includes the islands in the Caribbean.
Here is a frightening fact. The “old” L.F. Wade International Airport was built (or added onto the existing Bermuda Airport) by local contractors around 1990. At the time it was the most expensive construction project ever undertaken by the Bermuda Government.
The “new” L.F. Wade International Airport was necessary because the “old” L.F. Wade International Airport had reached the end of its useful life. That is a life of only 30 years or so.
The former Bank of Bermuda head office, now Point House, was built around 1970. After 50 years of use, it was renovated and it is expected to last for another 30 to 50 years.
Why is it that L.F. Wade International Airport has a useful life of 30 years or so and Point House has a useful life more than double that length of time?
PLP didn’t see the point in spending money on maintenance perhaps.
Never mind.
Build you Patience soon.
Delusional