PIF could be about to pull off mammoth £1bn Newcastle investment that will anger Sunderland supporters

ByNufc Now News

Newcastle International Airport could soon see a significant shift in its ownership structure, with a minority takeover reportedly on the verge of being announced.

This development comes amid a broader trend of airport sales across the UK, with major hubs such as Heathrow, Aberdeen, Glasgow, and Southampton already attracting fresh investment. Other airports, including London City, Birmingham, Bristol, and Newcastle, have also been placed on the market, signaling a wave of consolidation and investment in the aviation sector.

Currently, Newcastle International Airport is primarily owned by local authorities, which hold a 51% controlling stake. These authorities represent the councils of Newcastle, Northumberland, Gateshead, North Tyneside, South Tyneside, Durham, and Sunderland.

The remaining 49% stake is held by InfraBridge, an infrastructure investment manager specializing in transportation, logistics, digital infrastructure, and energy transition.

However, this balance of ownership could soon change, with reports suggesting that the Public Investment Fund (PIF) of Saudi Arabia is the leading contender to acquire a significant stake in the airport.

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The PIF’s potential involvement in Newcastle International Airport has sparked considerable interest, particularly given its existing ties to the region. The fund already owns an 85% stake in Newcastle United Football Club, having acquired the Magpies from Mike Ashley in October 2021.

This acquisition marked the beginning of a transformative era for the club, with co-owner Amanda Staveley pledging that the PIF would invest not only in the football team but also in the broader North East region. Securing a stake in the airport would align with this commitment and further solidify the PIF’s presence in the area.

From a financial perspective, the move could prove highly lucrative for the PIF. Newcastle International Airport has demonstrated strong performance in recent years, with revenues increasing by 22% to £79.1 million and operating profit growing by 36% to £33.9 million in the last year alone.

Valued at approximately £1 billion, the airport represents a strategic asset with significant growth potential. Acquiring a stake would not only enhance the PIF’s portfolio but also provide an opportunity to capitalize on the airport’s upward trajectory.

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The potential takeover has been the subject of intense speculation, particularly following reports in The Times last December that identified the PIF as the front-runner. This speculation gained further traction after the fund acquired a 37.6% stake in Heathrow Airport, signaling its growing interest in the UK aviation sector.

More recently, The Chronicle reported that meetings were scheduled to take place among the seven local authorities to discuss InfraBridge’s sale of its stake. However, meetings for North Tyneside and South Tyneside were unexpectedly canceled last Friday, leaving the proposed buyer’s identity undisclosed.

If the PIF proceeds with the acquisition, it would mark a significant power play in the North East, further cementing its influence in the region. This development comes against the backdrop of broader efforts to attract investment to the UK, including Prime Minister Sir Keir Starmer’s visit to Saudi Arabia late last year to promote economic ties.

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The potential involvement of the PIF in Newcastle International Airport underscores the growing intersection of global investment and local infrastructure, with far-reaching implications for the region’s economy and connectivity.

As the situation unfolds, all eyes will be on the local authorities and InfraBridge to see whether a deal materializes and how it might reshape the future of Newcastle International Airport.

For the PIF, this move represents not only a strategic investment but also an opportunity to deepen its commitment to the North East, building on its existing ties to Newcastle United and the broader community.

Whether the takeover is confirmed in the coming days or weeks, it is clear that the aviation sector in the UK is undergoing a period of significant transformation, with Newcastle International Airport poised to play a central role in this evolving landscape.