Palisade Investment Partners has repaid the $314.4 million payment it owed to Sunshine Coast Council for the airport expansion project.
Palisade Investment Partners had until June 30, 2022, to repay the council in full for the Sunshine Coast Airport Expansion Project and the payment forms part of the transaction announced in 2017 for a 99-year lease of the airport.
This amount is made up of a fixed payment for the Sunshine Coast Airport Expansion Project, which includes construction of the new runway, apron expansion and related infrastructure ($290m) and various airport-initiated upgrades to the runway ($7m), along with the second instalment of the long-term lease premium ($17m).
Sunshine Coast Mayor Mark Jamieson says the payment made by Palisade for the airport expansion project extinguishes all debt the council had incurred for the project.
“Importantly, the retirement of the debt associated with the airport expansion project will realise council’s original objective, which has always been to deliver this project – and the national and international connectivity it will enable – at no enduring cost to our ratepayers,” Cr Jamieson says.
“The value for ratepayers is being maximised by having Palisade as council’s commercial partner in the airport’s operation, as it drives further increases in the airport’s value to the region.
“The distinct advantage from the commercial arrangement with Palisade is that the ratepayer has retained a long-term interest in the airport, which is a considerably more valuable asset to the region and will deliver an annual lease payment back to council based on 5 per cent of gross revenue from airport operations.”
Palisade CEO Roger Lloyd says the organisation is pleased to be investing in a critical piece of infrastructure for the airport and the wider region.
“The runway expansion project enables the airport to service larger aircraft and longer-range flights, allowing direct flights to more Australian and international destinations,” Mr Lloyd says.
“This improved connectivity will boost tourism and generate jobs and economic growth for the region.”
Article source: www.hot91.com.au