During Brazil´s third round of airport privatizations decided at public auction in Sao Paulo, Fraport AG placed the top bids of BRL 1,505.75m (about EUR 446.81m) for Fortaleza Airport, and BRL 382.01m (about EUR 113.36m) for Porto Alegre Airport, the company said.
Along with the concession price, Fraport will pay a fixed fee amounting to 5% of the airport´s annual revenue. The concession will run for 30 years at Fortaleza and for 25 years at Porto Alegre. Currently holding a 100% stake, Fraport will be the sole owner and participant of these concessions. Thus, the concessions and future results will be fully consolidated at the Fraport Group level.
Following the takeover of the concessions, Fraport AG expects an additional accumulated EBITDA at the group level resulting from the two airports of around EUR 350m during the first 5 years and an accumulated negative contribution to the group result ranging from the mid to high double-digit million euros. Due to the takeover of the concessions and the mandatory capital expenditure, Fraport AG expects an increase in group net debt by up to around EUR 700m in the first 5 years.
Fortaleza´s Pinto Martins International Airport (FOR) is strategically located in the federal state of CearÃ¡ in the northeastern-most part of Brazil, which juts deep into the Atlantic Ocean. With over four million inhabitants, the Fortaleza metropolitan region ranks sixth in the country. FOR received 5.7 million passengers in 2016, making it the country´s twelve busiest airport. From 2005 to 2016, Fortaleza Airport registered 6.8% compound annual growth (CARG). The 5.3 square-kilometer airport site comprises one runway and one passenger terminal.
Porto Alegre´s Salgado Filho International Airport (POA) serves as the gateway to Brazil´s southern-most federal state of Rio Grande do Sul, which has a population of over 10 million people. POA welcomed 7.6 million passengers in 2016, making it Brazil´s 9th largest airport by passenger traffic. From 2005 to 2016, the airport´s compound annual growth averaged 7.3%. Comprising a total of 3.8 square kilometers, the airport has one runway and two passenger terminals. Air travelers can shuttle to the nearby Alegre Metro Airport Station for trains to downtown Porto Alegre and other cities of the 4.3 million urban region vVa the AeromÃ³vel people-mover.