Concert Infrastructure Fund acquires 80% of Arctic Infrastructure

Concert Infrastructure Fund acquires 80% of Arctic Infrastructure

Concert Infrastructure Fund (CIF) has acquired a majority interest (80%) in Arctic Infrastructure Limited Partnership, the entity responsible for the improvement, operation and maintenance of the Iqaluit International Airport in Nunavut, from InfraRed Capital Partners Limited.

InfraRed through InfraRed Infrastructure Fund III held 80% of Arctic. The remaining 20% is owned Bouygues Building Canada Inc. (10%), Sintra Inc. and Winnipeg Airports Authority (5% each).

With this acquisition, Concert Infrastructure assumes responsibility for the project, while Nunavut Airport Services Ltd., a subsidiary of Winnipeg Airport Authority, remains in charge of day-to-day facility and airport operations.

The Iqaluit International Airport is a public-private partnership (P3) with the Government of Nunavut. The project was initially developed by InfraRed to upgrade a decades-old facility in dire need of repair and was the first complete airport infrastructure project to be built as a P3 in North America.

CIF was established in 2010 as an independent investor, developer and manager of public infrastructure. Concert Infrastructure is an affiliate of Concert Properties Ltd. which
is exclusively owned by union and management pension funds, representing Canadian workers.

Through the acquisition of the Iqaluit International Airport project, Concert Infrastructure provides long-term investment in critical Nunavut infrastructure, while adding a new asset class to its portfolio

April 15, 2019, Vancouver, BC – With a focus on expanding its national presence and diversifying its portfolio, Concert Infrastructure Fund (Concert Infrastructure) today announced the acquisition of a majority interest in Arctic Infrastructure Limited Partnership, the entity responsible for the improvement, operation and maintenance of the Iqaluit International Airport in Nunavut. Concert Infrastructure has acquired the stake from InfraRed Capital Partners Limited (InfraRed).

With this acquisition, Concert Infrastructure assumes responsibility for the project, while Nunavut Airport Services Ltd., a subsidiary of Winnipeg Airport Authority, remains in charge of day-to-day facility and airport operations. The project consortium also includes Bouygues Buildings Canada and Sintra.

“This acquisition aligns perfectly with Concert Infrastructure’s objective to invest in critical social and economic infrastructure in support of Canada’s diversified economy, while enhancing our competitive position as a long-term and community-focused investment and development partner,” says Derron Bain, Senior Vice President, Concert Infrastructure. “We are excited to invest and deliver an important part of Nunavut’s infrastructure, while adding another asset class to our growing portfolio, which continues to provide stable returns to our Canadian union and management pension plan unitholders.”

The Iqaluit International Airport is a public-private partnership (P3) with the Government of Nunavut. The project was initially developed by InfraRed to upgrade a decades-old facility in dire need of repair and was the first complete airport infrastructure project to be built as a P3 in North America.

The original project included the design and construction of a new air terminal building and combined services building, the repaving and expansion of the runway, taxiway and apron, and the enhancement of roadways and lighting systems. The facility opened in December 2017, with the license to manage the facility running until 2047. The project has been a recipient of several awards including the CCPPP National Awards gold award for infrastructure in 2017.

Iqaluit International Airport is in Iqaluit, on Baffin Island in Nunavut, the largest of Canada’s territories, and is equidistant to Victoria, BC and Dublin, Ireland. Nunavut is home to 36,000 residents living in the city of Iqaluit and 24 hamlets across three time zones, with year-round access limited to air travel, making Iqaluit International Airport vital for northern access. It hosts scheduled passenger service from Ottawa, Montreal, Rankin Inlet, and Kuujjuaq on carriers such as First Air and Canadian North, and from smaller communities throughout eastern Nunavut.

Source: Private Capital Journal

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