A TAV Airports and Fraport JV has closed the financing and completed the upfront payment for the 25-year concession rights to Antalya Airport.

The joint venture (JV) paid 25% of the EUR €7.25bn concession fee to Turkey’s State Airports Authority, covering the operation of Antalya Airport until 2052. The JV secured €1.225bn financing for the upfront payment from nine banks – Deutsche Bank, Ziraat Bank, Akbank, Vakıfbank, TEB, Alpha Bank, Qnb Finansbank, Piraeus Bank and Kommunalkredit Austria. The remaining amount has been financed by equity.

TAV Airports President & CEO Sani Şener said, “Together with our partner Fraport, we have led a successful operation for the last four years in Antalya, which is the largest tourism destination in the Mediterranean. We have invested €750m in equity jointly with Fraport and have commenced the development works.”

The concession agreement involved a 25% upfront payment, with the remainder to be paid on an annual basis from 2027 onwards, when the new concession period begins.

Furthermore, the JV is investing around €600m to increase the annual design capacity of the airport to 65 million passengers in three years. As part of the investment, the international terminal area will increase to 267,000m2 from 14,000mw2, and the domestic terminal area will increase to 75,000m2 from 37,000m2. An additional 1,200,000m2 apron area will increase available aircraft parking positions from 106 to 181.

In 2040, an additional 70,000m2 of international terminal area will bring the annual airport capacity to 80 million passengers. The total investment during the concession period will reach €765m, according to the partners.