A consortium led by Highstar Capital has been named the private operator of the 57-year old Luis Munoz Marin International Airport in Puerto Rico. The consortium offered $615 million upfront, $550 million annually, and agreed to invest $1.4 billion in improvements to land the 40-year concession.

The deal was the second where Puerto Rico, a U.S. territory, transferred a publicly or government-owned asset to a private concern in a P3. In 2011, Puerto Rico’s Public-Private Partnership Authority auctioned its Puerto Rico Highway 22 in a toll road concession.

Highstar partnered with the Mexican airport operator Aeroportuario del Sureste (ASUR) as Aerostar Airport Holding. Aerostar outbid Grupo Aeropuertos Avance, a consortium teaming