MAG ‘will recoup Humberside investment’
12.05.08
An expert in airports sales believes Manchester Airports Group (MAG) should easily recoup the £17m investment it has made in Humberside Airport, Crain’s reports. The same newspaper said last week that MAG could lose money on the airport sale.
David Stroud, chairman of Manchester-based aviation consultant ASM, who has advised on the sale of Leeds, Budapest and Birmingham Airport, told the newspaper that although Humberside will not fetch the high prices paid for other airports in recent years, there will be operators that will take an interest in the facility if it comes onto the market.
Last month MAG said it was considering selling its 82.7 percent stake in Humberside Airport, which it bought in 1999 for £10m. The group has invested a further £7m in infrastructure in subsequent years.
Mr Stroud said airports were at the moment selling for up to 30 times earnings because of the huge growth potential investors see in the aviation market, but he added that Humberside faced intense competition from Robin Hood Airport. Moreover, Humberside's poor passenger growth and small profits (it posted a pre-tax loss of £622,000 last year) meant it was unlikely to fetch a high price.
He told Crain's: ‘MAG will definitely recoup its investment. How far beyond that it's hard to say.’
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