Changi Airport has bought a 30 percent stake in a company that owns and operates four airports in Russia.
The total value of the assets exceeds US$500 million.
Changi Airports International – the investment and consultancy arm of Changi Airport Group – declined to reveal how much it paid for its share in Basel Aero.
The airports are in the country's south – Sochi, Krasnodar, Anapa and Gelendzhik.
The other partners are Russian conglomerate Basic Element, with a 51 percent stake in the joint venture, and Sherbank of Russia, with 19 percent.
Changi Airport said on Friday that the new company aims to develop the airports – gateways to the 2014 Olympic Winter Games – to improve service levels.
The chief executive of its foreign arm, Lim Liang Song, said: “This partnership is a strategic step for Changi Airports International in the Russian market... Our goal is to transfer best practices in airport operations, management and development.”
Apart from growing traffic in and out of Singapore, Changi Airport has been focused on expanding its business overseas.
The Singapore airport has a 26-percent stake in Bengal Aerotropolis Projects, which is spearheading India's first airport city in the eastern Indian town of Durgapur, 160 kilometers from Kolkata.
It also owns 8percent of the company that operates airports in Rome, Italy.
The bulk of Changi Airports International's work overseas has been centered on short-term contracts, including in India, China and the Middle East, to help airports develop their business and infrastructure.
One of the more significant projects is a six-year, S$65 million (US$50.9 million) contract inked in November 2008 to help operate the King Fahd International Airport in Dammam, Saudi Arabia.
While its overseas forays do not contribute significantly to the bottom line, industry watchers say it is important for Changi Airport to spread its wings and to position itself for more opportunities that may arise.
A spokesman for Changi Airport Group told The Straits Times that it will continue to focus on its strengths as it drives its overseas strategy.
He said: “We believe we have much to contribute in terms of airport development, planning and operations and continue to provide consultancy services in various parts of the world.” (mtq)