Acsa property monetization strategy raises red flags
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The Covid pandemic has ripped straight through the aviation industry to the heart of the Airports Company of SA (Acsa), which is among the very few state owned enterprises that has run profitably and without the need for government bailouts for the last 26 years.
Acsa’s asset base of more than R30 billion includes an investment property portfolio of R7,7 billion. Properties in this portfolio have consistently performed well above the cost of capital, thereby subsidising landing fees for airlines and passenger service charges for passengers.
Acsa this week issued a request for proposals for transaction advisory services to advise Airports Company South Africa on the potential monetisation of some of its investment property portfolio. The transaction adviser, once appointed, will assess, and advise on the appropriate monetization programme and the portfolio.
Michael Avery spoke to ACSA CFO, Siphamandla Mthethwa, about the strategy Acsa is considering, and the thinking has alarm bells ringing.
Acsa’s asset base of more than R30 billion includes an investment property portfolio of R7,7 billion. Properties in this portfolio have consistently performed well above the cost of capital, thereby subsidising landing fees for airlines and passenger service charges for passengers.
Acsa this week issued a request for proposals for transaction advisory services to advise Airports Company South Africa on the potential monetisation of some of its investment property portfolio. The transaction adviser, once appointed, will assess, and advise on the appropriate monetization programme and the portfolio.
Michael Avery spoke to ACSA CFO, Siphamandla Mthethwa, about the strategy Acsa is considering, and the thinking has alarm bells ringing.