LaGuardia Gateway Partners (LGP) was named ´Americas Transportation Deal of the Year´ by the Project Finance International (PFI) Awards for the redevelopment of LaGuardia Central Terminal B, LGP said.
The PFI Awards honor achievement and ingenuity in the global project finance market. LGP has made history with the financial structure of the deal. Valued at USD 4 billion, the agreement is one of the largest public-private partnerships in the history of the United States, and the largest in US aviation.
The traditional approach to funding airport projects — through government grants and passenger fees — cannot keep pace with the growth in passengers and cargo going through airports, making public-private partnerships key for successful redevelopment. Capital raises consisted of USD 2.5 billion in project bonds, USD 1.5 billion supplied by the Port Authority, and USD 200 million in equity was split between the three principal shareholders of the consortium. The bonds were oversubscribed by a factor of ten, reflecting the strong interest by investors in the project.
LaGuardia´s Central Terminal B currently serves nearly 15 million passengers annually, but was designed to accommodate just eight million. The redevelopment project includes a new 35-gate Central Terminal B and is expected to achieve LEED Silver certification for sustainable design. It will also feature dual pedestrian bridges spanning active taxi lanes — the first in the world — that connect the terminal to two island concourses.
LaGuardia Gateway Partners was selected by the Port Authority of New York and New Jersey to deliver an extensive capital redevelopment project at LaGuardia Airport that will provide world-class terminal facilities and operations for passengers and airlines.
LaGuardia Gateway Partners is composed of equity and development partners Vantage Airport Group, Skanska, and Meridiam. LGP members have worked on more than 350 aviation and transportation projects globally and domestically, including international airports in New York (JFK), Chicago, Doha, Delhi, Los Angeles, Santiago, and Nassau.