Macquarie Group Ltd's (ASX: MQG) Macquarie Infrastructure and Real Assets (MIRA) arm is to sell its entire 50.1% holding in Hobart International Airport with Tasplan Super selling another 19.1% to a consortium led by Queensland Investment Corporation (QIC) and Royal Schiphol Group.
The price tag or estimated enterprise value of the airport are confidential, but Macquarie did report it is one of Australia's fastest growing airports and received over 2.7 million passengers in the most recent annual period.
Since Macquarie acquired a stake in 2007 it reports $150 million has been invested into the airport as its network expands to include flights to the Gold Coast, Adelaide and Perth.
Plans for a 500-metre runway extension are also claimed to support "future international flight connectivity."
Macquarie is likely turning a big profit on its investment with its MIRA Group sitting under the Macquarie Asset Management (MAM) division that has been the group's core profit driver ever since its GFC-induced makeover.
In generally globally falling interest rates have proven a tailwind for infrastructure assets like airports thanks to their robust yields and the cheap funding on offer for investment.
Macquarie is one of the world's largest investors in air travel via direct ownership of airports and planes it buys to lease back to airlines such as Qantas Airways Limited (ASX: QAN).
In fact if you took a Qantas flight to Hobart Airport you could be on Macquarie owned property all the way.
The airplane leasing business suits the airlines as it sharply lowers capital intensity (in having to buy jets) and boosts return on equity, while Macquarie turns profits via leasing fees less depreciation and operating expenses.
In total it boasts of 161 million passengers flying through its airports worldwide, although this large carbon footprint is partly offset by its push into the booming renewable or 'green' energy infrastructure investment space.
As an investment in 2019 Macquarie Group can now be looked at as mainly an asset management business that does some investment banking and high octane capital-market facing work on the side.
The group is guiding for around 10% profit growth over the six months to September 30 2019, but its new CEO is sticking to guidance for full year profit to be "slightly down" on fiscal 2019. As an investment opportunity over the medium term it looks good to me, as it offers a sound mix of value, yield, and growth.
