Internos Global Investors has bought the headquarters of Britain’s NATS, formerly the National Air Traffic Services, for RBS Pension Fund on a separate account basis.
The investment manager is set to announce the transaction on Tuesday – though it will not confirm that identity of its client.
The 261,000 sq ft (24,248 m2) office at Solent Business Park in Fareham near Portsmouth on the south coast of the UK is fully let on a long-term lease to NATS. It is thought Internos has agreed a deal to invest around £82 mln, making it the single largest UK investment deal by the company.
The seller is Greenridge, which bought it for around £67 mln in 2015 from Igal Ahouvi.
Internos’ separate account mandate is pan-European.
Robert Leadbetter, manager of the separate account declined to identify its client or the price paid, but said, 'This property is eminently suited to our client's investment requirements, providing long-term income at an attractive spread above bonds of comparable credit quality. This is also a landmark transaction for Internos, since it is our largest acquisition in the UK to date. The transaction process itself was both efficient and thorough, moving from acceptance of our offer to exchange of contracts in 20 working days.'
Air traffic control
NATS is the main provider of air traffic control services in the UK, providing services to 14 UK airports. Each year, it handles 2.4 mln flights and 250 mln passengers in UK airspace, as well as operating in over 30 other countries around the world.
The service is owned 49% by the UK government, 42% by The Airline Group, 4% by London Heathrow airport and 5% by an Employee Share Trust. The Airline Group comprises British Airways, Virgin Atlantic, Bmi, EasyJet, Monarch Airlines, Thomas Cook, and Tui Travel.
Last year it was embroiled in controversy when Ryanair and Stansted airport claimed NATS had ‘discriminated against’ traffic landing at the Essex airport because of issues such as not having enough staff to deal with take-offs and landings.
The Civil Aviation Authority said that while no formal breaches of regulations had been found, NATS would be subject to increased oversight after it “identified areas for improvement” including looking at the “resilience of its operations and contingency planning”. Ryanair subsequently urged NATS not to raise its service charges.
Goldenberg Real Estate is the advisor.
