Ferrovial Nears $1 Billion Bet on JFK Terminal 1 Revamp
Ferrovial Nears $1 Billion Bet on JFK Terminal 1 Revamp
(Bloomberg) -- Ferrovial SA, operator of London’s Heathrow airport, has agreed to invest more than $1 billion into the Carlyle Group Inc. entity providing equity funding for the redevelopment of John F. Kennedy International Airport’s Terminal 1, according to people with knowledge of the matter.
The transaction, which is subject to approval from the Port Authority of New York & New Jersey, will see the Ferrovial-Carlyle entity retain a 51% voting stake, said the people, requesting anonymity discussing private information.
A representative for Madrid-based Ferrovial declined to comment. A Carlyle spokesperson didn’t immediately respond to a request for comment.
The revamp, unveiled last December, features $9.5 billion in total financing and is expected to create 10,000 jobs, New York Governor Kathy Hochul said at the time. The project involves creating a new Terminal 1 on the current site of terminals 1, 2, and 3 at the airport, which handled a record 62.6 million passengers in 2019. The terminal will be 2.4 million square feet and have 23 international gates, Hochul said. JFK is among the busiest airports in the U.S.
Earvin “Magic” Johnson’s JLC Infrastructure and Ullico are also in the Terminal 1 investor group, which has an agreement to lease the facility through 2060. That’s an extended term to “provide sufficient time after the terminal opens to enable the private investors to recover their multibillion-dollar investments,” Hochul said.
Ferrovial has been active of late. Earlier Thursday, the infrastructure company said it reached an agreement with YDA Group to buy a 60% stake in the company that manages the Dalaman International Airport in Turkey. Its shares have rallied about 26% in the past 12 months, in part because vaccination rollouts globally have loosened travel restrictions.
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