K&S and Linklaters lead on Blackstone’s UK airport buy-in

King & Spalding and Linklaters scored lead roles on asset management giant Blackstone's £235 million acquisition of a 22% stake in AGS Airports - the owner of Aberdeen, Glasgow and Southampton airports.

The deal sees Blackstone’s infrastructure arm take a minority position in the airport operator, with existing shareholder AviAlliance retaining control through its 78% stake.

The transaction was structured as a sale by PSP Investments, one of Canada’s largest pension funds and the parent company of AviAlliance.

King & Spalding acted for Blackstone Infrastructure, fielding a London team led by partners William Charnley and Marcus Young, with support from senior associate John Lim.

Linklaters advised longstanding client PSP Investments, with financial sponsors partners David Martin and Genna Marten at the helm. They were supported by funds partner Clare Baker, managing associate Thomas Scott and tax managing associate Jack Harrison.

Bigger picture

The deal is another sign of private capital's appetite for infrastructure assets - in this case airports, as investors look for a return from the booming travel sector. Blackstone is especially active in the space - in January it raised more than $1 billion for a new infrastructure fund targeted at individual investors.

AviAlliance bought AGS in a £1.5 billion deal at the back end of last year - one of the last big deals handled by Paul Hastings infra stars Jessamy Gallagher and Stuart Rowson before their recent moves to Freshfields.

Blackstone has turned to King & Spalding for advice on a number of big mandates in recent years.

For Linklaters, the deal underscores its deep relationship with PSP after recent roles on AviAlliance’s sale of Budapest Airport and the €2.4 billion float of Athens International Airport on the Athens Stock Exchange.