Magic Johnson’s infra fund invests $10m in LaGuardia P3

JLC Infrastructure, a partnership between the former basketball star’s organisation and Chicago-based Loop Capital, will take a 5% stake in the airport project.

JLC Infrastructure, a fund formed by basketball hall-of-famer Earvin “Magic” Johnson and Loop Capital chief executive Jim Reynolds, will invest $10 million in a $4 billion PPP to redevelop Terminal B at New York’s LaGuardia International Airport.

LaGuardia Gateway Partners, a consortium of Paris-based fund manager Meridiam Infrastructure, Swedish developer Skanska and Vancouver’s Vantage Airport Group, closed last June on the project, the largest US PPP to date. JLC, launched in 2015 as a partnership between Magic Johnson Enterprises and Chicago-based Loop Capital, will take a 5 percent stake in LGP’s $200 million equity share.

JLC has raised just more than $300 million, according to a recent SEC filing. In April, Johnson said he planned to deploy millions of dollars to develop infrastructure in the US and throughout the world.

The vehicle has been looking for opportunities in the US PPP market. It is part of a consortium aiming to develop a terminal at Denver International Airport. And it was also part of a team bidding for a $5.5 billion modernisation of Los Angeles International Airport, though the group has pulled out of that project.

JLC’s investment in the LaGuardia PPP was announced on Tuesday at a ground-breaking ceremony for the project. It marks the first time a minority- and women-owned business enterprise, or MWBE, has invested equity in a PPP project in the state, according to Governor Andrew Cuomo.

The LaGuardia project will see the airport’s 835,000-square-foot terminal replaced by a new 1.3 million-square-foot 35-gate terminal, which will connect to Terminal C. LGP will operate and maintain the terminal through December 2050. Operations at the new terminal are set to begin in 2020, with work completed by 2022.