InstarAGF Asset Management has broadened its aviation infrastructure business with the acquisition of a jet fuel pipeline and terminal facilities in the US for $450m (€394.3m).
InstarAGF’s subsidiary JET Infrastructure Holdings has bought the infrastructure assets from Buckeye Partners.
The assets include a jet fuel pipeline from Port Everglades, Florida to the airports in Fort Lauderdale and Miami, Florida; pipelines and terminal facilities serving the airports in Reno, Nevada, San Diego, California and Memphis, Tennessee; and refined petroleum products terminals that serve major urban growth centres in Sacramento and Stockton, California.
The assets will continue to be operated and maintained under a long-term contract by Buckeye Development & Logistics.
Gregory J Smith, the president and CEO of InstarAGF, said: “This is an excellent opportunity for InstarAGF to acquire a portfolio of critical, high quality aviation infrastructure assets with utility-like characteristics serving major hub and origination and destination airports in the US.
“These assets are competitively positioned, underpinned by long-term contracts, and poised for future growth as our customers expand operations and air travel continues to increase.”
Launched in 2014, InstarAGF is a joint venture between Instar Group and AGF Management. The company targets North American middle-market opportunities in the infrastructure sector and other alternative real asset categories.