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Fund proposes $7b airport for Melbourne


A proposed $7 billion international airport in Melbourne's southeast fringe would be fully funded, an investment group says.

Melbourne-based Paragon Premier Investment Fund says it has a letter of intent from an unnamed financier to build an airport about 75km from the CBD around Koo Wee Rup and Lang Lang.

Managing director Alande Mustafa Safi said the plan for the airport, which would be subject to state and federal approvals, would be presented to the Victorian government next week.

"We're not asking for any government backing or funding," he told AAP on Tuesday.

"We don't need a penny to build this."

Mr Safi said the airport would initially run domestic and cargo flights, before extending to international passenger traffic and be fully operational by 2022.

Fellow fund director Gerard Kennedy said Mr Safi was "tapped on the shoulder" about the airport while in Dubai.

"We did not go looking for an airport as part of our portfolio ... It just came out of the blue," he told ABC radio.

"He got tapped on the shoulder from some people who said 'we want an airport in southeast Victoria. We want it for this reason. We want to see these huge advantages of that particular area. We want people to be able to fly directly there'."

Mr Safi previously raised plans for an airport in Melbourne's southeast in March.