Future Fund chairman Christopher Swasbrook said the sale would provide long-term benefits for the council.
“The airport share sale enables the Auckland Future Fund to get under way with investing on behalf of Aucklanders and contributing funds to support council services,” Swasbrook said.
“The transaction received multiple bids from global brokers and we are extremely pleased in the final outcome delivered by UBS,” he said.
“The Auckland Future Fund is now in a fantastic position for its next stage of investment.”
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.
Auckland Mayor Wayne Brown said the sale was positive for Auckland.
“We are getting on with delivering a future fund that will support Auckland in the long term.
“The share sale means the council is more resilient to shocks that impact Auckland and also helps reduce the rates burden for our communities.”
Liaison councillor Christine Fletcher said the sale of the shares was a launchpad for the Auckland Future Fund.
“The board has moved quickly and decisively to secure a sale that is extremely positive,” she said.
“It’s pleasing to see the future fund progressing as planned on behalf of Aucklanders.”
Swasbrook said the fund would provide 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 says.
The fund expects to provide the council with around an additional $40 million of cash returns a year from 2025/2026.
The final price will be confirmed at settlement on Friday.
Auckland Airport listed on the NZX in 1998.
Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.
