Canadian pension funds are actively engaged in discussions with the federal government about potential investments in the country's airports, according to Caisse de Depot et Placement du Quebec. As reported by Financial Post, Charles Emond, CEO of La Caisse, confirmed that 'there have been some discussions in recent weeks and days' regarding airport investments. The pension funds are seeking to move forward with these opportunities, citing the government's proactive approach and ability to execute deals effectively.
The current discussions involve multiple pension funds and focus on clarifying the government's willingness to sell assets and the terms of operating agreements. According to Financial Post, Emond noted that 'the government is looking into the governance of all this' and will need to define deals, structure arrangements, and engage advisers before potential buyers emerge. The talks represent a significant shift for Canadian pension funds, which have previously been excluded from airport investments due to the government's ownership structure.
Any potential airport sale could generate many billions of dollars for the government, depending on the structure of the deal. As reported by Financial Post, the Greater Toronto Airports Authority, which operates Toronto Pearson Airport, earned almost $1 billion before interest, taxes, depreciation and amortization last year on approximately $2.1 billion in revenue. This demonstrates the substantial financial potential of Canada's major airports for potential investors.
Canada's public pension funds bring significant airport investment experience from international markets, particularly in Europe. According to Financial Post, these funds have 'plenty of experience as investors in airports' but have been 'shut out of making similar investments in Canada' due to the country's unique ownership structure where major airports are typically operated by not-for-profit airport authorities with federal government land ownership. La Caisse previously held a significant stake in London's Heathrow Airport for almost 20 years until its recent exit from the investment.
