The contract will begin in October 2015, and TAV paid €717 million (plus VAT), to operate the airport that handled 3.63 million passengers in 2013.
The deal adds a fifth airport to TAV's Turkish portfolio, which already includes Istanbul Atatürk, Ankara Esenboga, Izmir Adnan Menderes and Antalya Gazipasa airports.
TAV won an auction for the Milas-Bodrum tender against Fraport IC JV, and Astaldi-Göçay-ROM Airport JV and YDA Construction.
The Milas-Bodrum concession was secured after a bid by TAV in the 105th round, in the auction run by state airport authority DHMI.
TAV Airports president and CEO, Sani Sener, says: “Milas-Bodrum Airport connects a significant tourism centre to the rest of the world having passenger traffic higher than 3.5 million.
“Milas Bodrum becomes the 14th airport in our portfolio and is a candidate to be the 4th largest city of Turkey in 2025. We believe in the future of Bodrum. We did not have the intention of giving up.
“There is a 20% down payment; however we already have our financing at hand. We will undertake this project with 30% of shareholder's equity and 70% financing. We invest all our earnings in this industry as it is our sole business.
“We have TAV Academy, a company that provides trainings to create human resources for airport operations industry of our country and region. We will not have any trouble regarding finance or HR during the project. We participate in all airport projects that are within our business model."
Milas-Bodrum is located within the borders of Muğla province, between Milas and Bodrum, two important cities of antique Caria region.
The airport plays a significant role in the transportation to tourism centres such as Didim, Kuşadası, Söke of Aydın province as well as Muğla.
TAV now operates 14 airports, as also runs Tbilisi and Batumi airports in Georgia, Monastir and Enfidha-Hamammet airports in Tunisia, Skopje and Ohrid airports in Macedonia, Medinah Airport in Saudi Arabia and Zagreb in Croatia.
Augustin de Romanet, chairman and CEO of Aéroports de Paris, the main shareholder of TAV with 38% of the capital, says: "The victory by TAV Airports in this call for tender is very good news for our Turkish partner and for Aéroports de Paris.
"Milas-Bodrum Airport has a considerable development potential, particularly due to the dynamic tourism sector in the south-west of Turkey. Within the next ten years, Bodrum is set to become the country's fourth largest city.
"This victory shows that the alliance with TAV Airports concluded in 2012 is generating value. Aéroports de Paris and TAV represent one of the top airport alliances in the world with a total of 175 million passengers welcomed in 2013.
"We take full advantage of the synergies between our two groups, in particular when it comes to preparing a response to some international calls for tender."