The change in strategy comes amid earlier scepticism that the partners could attract buyers because of the cost of the 25-year lease, which is expected to total EUR 22.1 billion ($24.1 billion).
Tuesday 01, October 2019
Owners of a concession to operate Istanbul’s new $11 billion airport abandoned a plan to potentially sell a stake in the venture, Bloomberg.
The four construction firms also terminated a mandate given to Lazard Ltd. to provide a valuation of the airport and manage discussions with possible buyers. IGA Havalimani Isletmeleri stated that it is too early to sell a stake in the consortium, because the airport only started operating in April 2019.
Five Turkish builders—Cengiz Insaat, Limak Holding as well as Mapa Insaat, Kalyon Insaat and Kolin Insaat—won the right to build and operate the airport and were each awarded equal holdings in the venture. Kalyon Insaat now owns 35 per cent and Cengiz Insaat 25 per cent after Kolin Insaat sold its 20 per cent stake earlier this year.
Additionally, Limak and Mapa each retain a 20 per cent stake.
IGA has the biggest corporate debt load in Turkey after borrowing about EUR 5.7 billion for the airport, which is 20 miles outside Istanbul on the Black Sea coast and spans an area larger than Manhattan.
The new airport replaced Ataturk airport, which was operated by TAV Havalimanlari before it was shut down in March. The new airport, which Turkish Airlines is using as its new hub, is designed to eventually serve 200 million passengers when all six runways are operational.