Investcorp Capital joins $4.2bn JFK redevelopment project

ADX-listed Investcorp Capital has entered into a significant partnership to invest in the redevelopment of New York’s John F. Kennedy International Airport (JFK) Terminal 6.

The ambitious project, valued at $4.2bn aims to enhance the airport’s infrastructure and passenger experience.

JFK serves as New York’s primary hub for international traffic, catering to 69 per cent of the region’s international passengers in 2022.

The airport draws on the robust New York market for its passenger traffic.

Its limited gate availability and congested airspace contribute to its strong supply-demand dynamics.

Investcorp Capital’s investment in the project is facilitated through its newly formed partnership with Corsair Capital, known as Investcorp Corsair Infrastructure Partners.

This partnership serves as the lead financial sponsor of the redevelopment initiative, with Vantage Airport Group, a wholly-owned airports platform of Corsair Capital, assuming the roles of developer, operator, and manager of the new terminal.

Key JFK terminal 6 project details

The redevelopment initiative will replace the existing Terminal 7 with a state-of-the-art facility spanning 1.2 million square feet. Terminal 6 will offer improved efficiencies and experiences for passengers by seamlessly connecting international and domestic flights from Terminal 5.

It will feature 10 gates, spacious waiting areas, over 100,000 square feet of commercial amenities, airline lounges, and two AirTrain stations.

Phased construction

The construction of JFK Airport Terminal 6 will be executed in two phases, with Phase I already underway and expected to be completed by 2025.

Phase II is slated for completion in late 2027. Throughout the construction process, the existing Terminal 7 will remain operational until its demolition to pave the way for the next phase of development.

Hazem Ben-Gacem, vice chairman and non-executive director of Investcorp Capital, highlighted the investment as part of the firm’s strategy to incorporate infrastructure into its portfolio.

He emphasised the commitment to delivering high-quality opportunities in the infrastructure asset class to investors.

In other news, in November last year, Ferrovial reached an agreement with two different buyers to sell its entire 25 per cent stake in Britain’s busiest airport, Heathrow, for GBP2.37bn ($3.01bn).

Ferrovial said the buyers for the stake in FGP Topco – the parent company of Heathrow Airport Holdings – were private equity fund Ardian and Saudi Arabia’s Public Investment Fund (PIF).

Ardian would acquire a 15 per cent stake and PIF a 10 per cent stake.

Read: Heathrow stake sale to PIF opens door for a resurgence in airport deals