Auckland Council Sells 9.71% Stake in Auckland Airport

The Auckland Future Fund (AFF) on Wednesday confirmed the sale of Auckland Council’s remaining shares totalling 9.71% in Auckland International Airport Limited (AIAL) for $770 million.

The share sale for the AFF, which is a council-controlled organisation, is part of the council’s financial strategy to protect and strengthen the New Zealand Exchange (NZX)-listed Auckland’s physical and financial resilience. The final price will be confirmed at settlement on Friday.

The sale, which was planned as part of the council’s Long-term Plan 2024-2034, saw the council’s remaining shares sold at a price of at least $4.72 per share. This exceeds the Long-term Plan 2024-2034 projection, which was for $4.61 after transaction costs.

AFF Chair Christopher Swasbrook said that the sale will provide long-term benefits for the council, and the residents and ratepayers of Tāmaki Makaurau.  “The airport share sale enables AFF to get underway with investing on behalf of Aucklanders and contributing funds to support council services,” he said.

“The transaction received multiple bids from global brokers and we are extremely pleased in the final outcome delivered by UBS. The Auckland Future Fund is now in a fantastic position for its next stage of investment,” he added.

The funds realised from the sale of the remaining AIAL shares will be invested by the AFF. The fund operates under the high-level direction of Auckland Council but through an independent structure, where the trustee’s board makes all key decisions.

Delivering on Promises

Auckland Mayor Wayne Brown said that today’s shares sale shows the council is listening to its ratepayers and delivering on its promises.

“Today’s sale is a positive for Auckland. We are getting on with delivering a future fund that will support Auckland in the long-term. The shares sale means the council is more resilient to shocks that impact Auckland and also helps reduce the rates burden for our communities,” Brown added.

Liaison councillor Christine Fletcher also said that the sale of the airport shares is a positive milestone for the AFF.

“The sale of the shares is a launch pad for AFF and enables it to get on and work for Aucklanders and our ratepayers. The board has moved quickly and decisively to secure a sale that is extremely positive. It’s pleasing to see the future fund progressing as planned on behalf of Aucklanders,” Christine said.

Swasbrook said that that by diversifying Auckland Council’s major investments, AFF is now in place to help protect the Auckland region besides providing long-term capital growth and cash distributions.

“This will help fund council services that benefit current and future Aucklanders, and reduce reliance on rates increases to fund Auckland services and infrastructure,” he said.

AFF is estimated to provide the council with around an additional $40 million of cash returns per year from 2025/2026, while reducing its reliance on rates increases. AFF was independently advised on this sale by PwC and Simpson Grierson.