Brian Clapham, Investment Analyst, Funds Management
When most people think about how super funds invest, they probably think about assets such as cash and shares, and maybe property. But, while these things do of course make up a large portion of QSuper’s investment portfolio, there are other – perhaps less expected – asset classes that we invest in, including infrastructure. And one local QSuper infrastructure asset that we’re going to focus on in this post is Brisbane Airport.
If you invest in QSuper Lifetime or any of the Ready Made options (Balanced, Moderate or Aggressive) you have exposure to our infrastructure program, meaning some of your money will be invested in Brisbane Airport.
QSuper invests in infrastructure through managers that have the ability to source quality assets and enhance the value of an asset to the benefit of the QSuper Fund and our members. Brisbane Airport is a good example of this. QSuper’s stake in Brisbane Airport was acquired in August 2007 and is actively managed by our manager QIC Limited (QIC).
Operated by Brisbane Airport Corporation Pty Limited (BAC), 24 hours a day, seven days a week, Brisbane Airport has two major terminals servicing 27 airlines flying to 69 domestic and international destinations. It’s the largest capital city airport in Australia by land size (2,700 hectares) and the third-largest airport in Australia by passenger numbers with more than 22 million people travelling through the airport in the 2014/15 financial year.
In 2015 Brisbane Airport was named ‘Capital City Airport of the Year’ for the second consecutive year at the Australian Airports Association (AAA) awards. The projects considered in BAC’s nomination included the International Terminal redevelopment project, operational management of the G20 event at the airport, and BAC’s innovative Digital Departure Card.
Currently 420 businesses are located at the airport, servicing a diverse range of industries offering services such as freight and aircraft handling, warehousing, transport and communications, manufacturing, research, property and infrastructure development, education and training, recreation, tourism, accommodation, leisure and retail. Collectively these businesses employ around 21,000 people, a number expected to exceed 50,000 (the size of a regional town) by 2029.
With passenger numbers also forecast to more than double by 2034, Brisbane Airport is on the cusp of an exciting phase in its history which will see more than $3.8 billion privately invested over the next decade to build critical infrastructure at the airport. Projects include a new parallel runway which is currently the largest aviation infrastructure development in Australia and scheduled for completion in 2020. There are also new car parks and access facilities, terminal expansions, road upgrades, new aeronautical facilities and a number of new commercial buildings planned or under construction.
If you have any questions about this asset, please let me know in the comments section below.
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The views of the author are not necessarily the views of the QSuper Board. We’ve put this information together as general information only and as such, it doesn’t take into account your personal financial objectives, situation, or needs. This information shouldn’t be relied upon by members. Past performance is not a reliable indicator of future performance. Each of our investment options has a different objective, risk profile, and asset allocation.
Investment Analyst, Funds Management
Brian’s role involves working with the senior portfolio managers and the Head of Funds Management in implementing investment policy decisions, structuring potential investments and managing the external investment managers.