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CYPRUS. The Aer Rianta International Group has completed the acquisition of a further 50% shareholding in CTC-ARI (Holdings) Limited from its Cypriot partner, Ermes Department Stores, a member of the Shacolas Group. CTC-ARI is the leading travel retailer at Larnaka and Pafos airports.
The deal was announced on 30 May. It gives ARI Group full control of retail operations at the two Cyprus airports. The stake was bought for a cash consideration of €54 million.
CTC-ARI operates at the two Cypriot airports under a long-term exclusive concession arrangement to 2031. The business generated turnover of €88 million in the year to 31 December 2013. It operates through around 5,000sq m of retail space, and employs 375 people across both airports.
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Speaking to The Moodie Report about the deal in May, ARI CEO Jack MacGowan said: “We are focused on growing the Middle East and Indian geographies where we are already the leading operator. This is a move to increase and consolidate our operations in that region.
“It will be profit accretive immediately, although it doesn’t increase the overall managed turnover, and it is an important deal for us. It shows the confidence of the ARI executive and our shareholder in doubling the value of our global business in the next four years.”
The 17 years remaining on the concession term was a crucial attraction, said MacGowan, as is the growth potential of the Cyprus tourist market, which he said had remained buoyant even during a period of economic challenges.
“We believe that Cyprus is emerging from the bottom of the cycle and is well on its way to a recovery. The tourism business has shown its resilience over the past year, and we expect it to grow and to be a very competitive market compared to those around it, specifically Egypt and Turkey.”
*In other regional news from ARI parent DAA, its subsidiary DAA International has won a training and advisory contract with Oman Airports Management Company (OAMC). Through this, the Irish company will provide specialist training to OAMC staff and potentially offer advisory services in areas of operations such as safety and security, customer service, car parking, and asset management and development.
DAA International, which was formally established in January, provides airport management services, training, and car park management services to airport operators and financial investors in the airport sector. The first phase of this agreement with OAMC will see 100 staff from Oman travel to Dublin Airport for training over the next six months.
ARI is present in Oman through its partnership with Oman Air in Muscat Duty Free.
