Hangar builder Sky Harbour Group (SHG) has acquired CloudNine at Camarillo, an approximately 120,000 sq ft hangar and office complex, and Sky 805, the holder of related ground leases and FBO rights at Camarillo airport, which serves the greater Los Angeles metropolitan area.

Under the terms of the acquisition, SHG paid approximately $31 million in cash consideration, substantially all of which was utilised to satisfy existing senior and subordinated debt obligations of CloudNine and Sky 805 at an aggregate discount of 10 per cent to such debt's face value.

The rebranded CloudNine will operate as a Sky Harbour campus while Sky 805 will continue operating the Channel Islands Aviation FBO and related businesses. Operations will be led by Nick Martino, the current general manager.

The Camarillo airport campus joins Sky Harbour campuses now operating at Houston's Sugar Land Regional airport, Nashville International, Miami Opa-Locka and San Jose Mineta; campuses in development at Denver Centennial , Phoenix Deer Valley, Dallas's Addison, Chicago Executive, Bradley International, Stewart International, Hudson Valley Regional, Orlando Executive, Dulles International and Salt Lake City International airports, and additional campuses soon to be announced.

Tal Keinan, Sky Harbour's chairman and chief executive officer, comments: “Camarillo represents a rare alignment of the stars for Sky Harbour. The Los Angeles metro is one of the nation's top business aviation markets. More specifically, Camarillo Airport is positioned on the vital business aviation expansion corridor between Calabasas and Montecito, which we believe is set to benefit from a readily foreseeable long-term surge in home basing demand. The hangars and the campus itself were designed and built to the Sky Harbour standard, providing a rare opportunity to implement Sky Harbour's home-base service offering at an already-existing facility, acquired at below-replacement cost. Nick Martino and his team are seasoned local operators and a natural fit with Sky Harbour's culture that will broaden our regional leadership bench. In the short term, the CMA acquisition is expected to offer an accelerated path to cash flow in an attractive home-basing market, an accelerated path to positive consolidated operating cash flow for Sky Harbour in general and a welcome enhancement for Sky Harbour's airport operations team. In the long term, CMA offers a compelling on-airport expansion opportunity and will serve as Sky Harbour's beachhead in this growing national tier-one market.”

Francisco X Gonzalez, Sky Harbour's chief financial officer, adds: “Given its attractive acquisition price, and an already established initial revenue stream from high-quality tenants, this acquisition is expected to be immediately operating-cash and earnings-accretive to Sky Harbour on a consolidated basis, with significant upside potential in the coming months and years. The acquisition, particularly at this stage of our company's development, is also expected to be credit accretive. Improved cost of debt capital contributes directly to our equity value as we prepare for anticipated continued expansion of our development programme in 2025.”