The auction for North Queensland Airports Pty Limited is understood to have been pushed out until the new year, but the challenge when it gets under way will be sorting out tyre kickers from legitimate buyers. Sources say a lot of tyre kickers are around the hoop and most of the interest is from offshore, but given its remote location, establishing comfort around some bidders' concerns could be a trickier exercise. One of the factors to consider is how popular Cairns and the Great Barrier Reef will continue to be as a destination in future.

The sales pitch is the opportunity to transform Cairns into an international destination, with international flights from further afield. So far, the parties known as the most likely suitors include Amsterdam Airport owner The Schiphol Group (Royal Schiphol Group N.V.) and France-based investor Vinci SA (ENXTPA:DG). Global infrastructure investor Stonepeak Partners LP may also be there.

But the understanding is that buyers are asking a large price - as much as $3 billion. Global groups are more likely to be drawn to the opportunity because, unlike other airport assets on offer where regulations stipulate that they cannot own more than 49%, in this case they are allowed to own all of the airport business. Vinci was in the mix early on for the recent sale process of Gold Coast airport owner Queensland Airports, under which 74% of it was sold to Kohlberg Kravis Roberts and Skip Capital for $3 billion.

Both KKR and Skip could be around the hoop for the North Queensland opportunity as well. Meanwhile, Dexus expressed some early interest. North Queensland Airports owns Cairns and Mackay airports and the Mackay Airport Hotel.

Based on its $3 billion price tag, it is more expensive than Perth Airport - the subject of a recent transaction - and Queensland Airports, from an earnings multiple perspective. The whole North Queensland Airports business is up for sale through Macquarie Capital. The Infrastructure Fund owns 27% of North Queensland Airports.

A JPMorgan Asset Management-controlled fund owns 66%, while the other owner is Perron with 7%. In 2018, Auckland International Airport offloaded its 24.6% stake to Perron and The Infrastructure Fund for $370 million. Cairns Airport says that before the pandemic it catered to more than five million passengers a year.