Council: Legal agreements being drawn up for investment into Waterford Airport
Waterford Airport. File Picture
Waterford City and County Council has confirmed legal agreements are being drawn up for investment into Waterford Airport, following reports of €20m funding being provided by Galway-based investors.
The billionaire Comer brothers, who own a property portfolio across Europe, have reportedly agreed to pay up to €20m to buy a majority stake in the company.
It would see commercial flights return to the airport for the first time since 2016.
Following reports of investment in the , the council issued a statement, cautioning that negotiations have not been finalised over the exact details of the arrangement.
It is understood that this partly refers to how the values of shares held by directors and other shareholders may be diluted when the Comer investment is complete.
The understands the funding was discussed at a meeting of board members held late last month, where they were told negotiations were ongoing.
A spokeswoman said: "Waterford City and County Council would confirm that discussions are ongoing with potential investors at Waterford Airport and legal agreements are being drawn up, but have not been executed.
"Any investment proposal will be subject to Government support towards capital expenditure and subject to the approval of Waterford City and County Council and the shareholders of the company (Waterford Airport)."
The council added that it will not be making further comment at this time.
Attempts to secure an investor have been taking place since late 2019, after the collapse of a private consortium of South East companies including Coolmore Stud, Glanbia and Dawn Meats, who had agreed to provide €5m in the airport in return for an equity stake in the company. Later attempts to secure backing from a European investor were decided against by the company.
The airport has struggled financially in recent years, with annual emergency payments from the Department of Transport, which totalled €1.5m over three years, pulled due to the pandemic.
A commitment of €5m capital funding for the extension was granted by the department in 2019, with the remaining €2m committed by local authorities in Waterford, Wexford, and Kilkenny.
The project was costed at €12m at the time however it is believed this has risen to €15-€16m due to inflation, with private sector funding needed to increase in line with rising costs.
Independent Waterford TD Matt Shanahan said it was important that the airport has attracted interest from "proven entrepreneurs" in the Comer brothers, and expected the Government would provide the required public investment.
"My sense is so long as the private side is adequately resourced and has the financial capability to make this a success I think the Government support will be provided," he said.
"I'm basing on that on how over €160m was provided to Irish aviation in recent years of which Waterford Airport received zero. But the airport has been able to gain this kind of credible interest from serious investors so it will soon be time for the government to honour its side of the agreement and give us a functioning regional airport."
The news was "cautiously welcomed" by Fine Gael senator John Cummins, a former director, who said the airport has the ability "to act as a catalyst for growth" across Waterford and the entire South-East.
"Obviously, nothing is agreed until everything is agreed but it is great to have the Comer Brothers in active negotiation to purchase a majority shareholding, their portfolio and expertise speaks for itself and obviously they see the potential of an expanded Waterford Airport," he said.
The Comer Group was established over 30 years ago by brothers Brian and Luke, originally from Co Galway and they now have investment interests in a number of markets, including luxury homes, office parks, retail parks, hotels and leisure facilities.
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