Singapore’s Changi Airport Group is part of a consortium that has won the tender to acquire controlling stake in Russia’s Vladivostok International Airport. The consortium is led Russian Direct Investment Fund (RDIF) – a $10 billion fund established to make equity investments into the country’s economy; Basic Element, one of Russia’s diversified industrial groups, is the third partner.
All three partners will hold an equal share in the consortium.
Vladivostok International Airport is strategically important due to its geographical location that forms the crossing of two air routes between the Russian Far East and the Asia Pacific region.
In 2012, the aerodrome at Vladivostok International Airport underwent large-scale modernisation. A new terminal was constructed and since then, it has been able to receive all types of aircraft.
The deal will see the consortium acquire 52.16 per cent of OAO International Airport Vladivostok and full acquisition of ZAO Terminal Vladivostok.
The Changi Airport Group’s stake in the consortium, will be held through its wholly owned subsidiary Changi Airports International (CAI). This marks CAI’s second investment in Russia. In its earlier deal too, it had joined Basic Element and Sberbank to develop airports in the Krasnodar region, including Sochi, Krasnodar, Anapa and Gelendzhik.
The group’s other similar projects include, development at Brazil’s Tom Jobim International Airport the aerotropolis in India.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said: “The unique global and local experience of our consortium partners, CAI and Basic Element, will be crucial for the further development of Vladivostok International Airport. We are glad that four large investment funds from the Middle East, including the leading sovereign wealth funds of the region expressed their intention to join this deal as part of RDIF automatic co-investment mechanism. With an Open Skies policy in place, this airport has the potential to become a key Russian hub within the Asia-Pacific transportation and logistics network. Over 400 million people live within two hours flight of Vladivostok. The transportation hub will promote economic development in the region at every level.”