"Australia's Macquarie Eyes India Airport Redevelopment"

Tuesday, December 7, 2004

Australia's Macquarie Eyes India Airport Redevelopment


MELBOURNE (Dow Jones)--Australian investment bank Macquarie Bank Ltd. is
looking to bid for redevelopment rights of two of India's biggest airports
as part of a consortium. 

Macquarie and its partner Aeroports de Paris is one of 10 consortiums that
have lodged an expression of interest for the multibillion overhaul of the
Mumbai and Delhi airports. 

"We've confirmed we've lodged an expression of interest," a spokesman for
Macquarie said Tuesday. 

The Indian government intends to sell a 74% stake in the two airports, which
rank as that nation's busiest. 

With each redevelopment costing as much as US$1 billion, the airport share
sales are being viewed as India's biggest private-sector investments in
infrastructure. 

However, if the Macquarie-linked consortium emerges as a winner for the
right to operate the airports under a 30-year lease, it is unlikely the
asset will be folded into Macquarie's listed airports fund. 

Instead, the airports would most likely become the foundation assets for a
new investment fund. 

Macquarie Airports has previously said that while it wants to grow its
operations, its focus is on Europe. The airport operation has also expressed
a preference to acquire existing operations rather than undertake
redevelopments. 

A spokeswoman for Macquarie Airports declined to comment. 


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