In every town and city, there are economic development offices and the most important aspect is to examine the assets of the area and try to enhance them to provide greater opportunities for the community. Often times, there are a wonderful assets built in a different era, the company evolved and left the assets. In today’s world of greater jobs in services what could they become if money was available to do it. Sometimes we think that most of the opportunities are taken, but there are still many if you are willing to dream and have access to capital.

In an article by Eric Reguly of the Globe and Mail, a new Canadian aviation company, Centerline Airport Partners has bought a airport in northern Italy and has plans to invest in other underused airports around the world.

Centerline bought 51% of Parma International Airport which is halfway between Bologna and Milan in Italy’s wealthy industrial heartland. Pharm is home to Parmigiano-Reggiano Cheese (many people use it in pasta dishes).

Centerline agreed to pay $19 million over 3 years for its stake with the Emilia-Romagna regional government. It also plans to upgrade the airport by 500 feet to allow Boeing 757s to land. This would be along the plans to boost passenger traffic from 125,000 a year to 700,000 a year. In comparison Rome’s airport handled 4.5 million in May. The expectation of the plans is if you build it they will come. The other airlines will move flights from Bologna and Milan or use the airport as a catchment area and easily move people around Italy. Presently Ryan air has 2 or 3 flights a day.

Centerline was formed 2 years ago by Andrew O’Brian who was most recently the CEO of Reach Airports, a joint venture between Munich Airport International and Caryle Group and others. Centerline is raising $50 million to $100 million in its first financing round. Other airports the company is looking at are Aarhus Airport in Denmark and the Jacqueline Cochran Regional Airport in Southern California formerly Thermal Army Airfield which is in the LA area.

Linking to dividend paying stocks, in every industry people see potential assets to be expanded to grow to take move to the next level. The risk of course is the need of capital, and many upgrades for others to see their vision. This is the stuff of great entrepreneurial stories and losing money, because there is reason why no one upgraded in the past. Just because an airport is upgraded will the airlines move flights to it? how are connections to the other cities? Dreams and visions of underused assets are wonderful. It could work or not, but it seems the owners have institutional connections to private equity money and that helps. For a dividend investor, the story is a big risk because just because you build it, will they come? is not a great answer. It could be a wonderful story, and in a few years’ worth looking at, but sometimes there is great value in underused assets.

There are more questions than answers, till the next time – to raising questions.