A consortium comprising AIMCo, OMERS, Ontario Teachers’ Pension Plan and Wren House Infrastructure Management Limited, the infrastructure investing arm of the Kuwait Investment Authority, are on the verge of buying London City Airport for around £2bn.
Global Infrastructure Partners has agreed to sell its 75% interest in the airport, while Highstar Capital has also agreed to sell its 25% interest in London City Airport as part of the transaction.
The deal is not subject to any regulatory approvals and is expected to close on 10 March 2016.
London City Airport is London’s fastest growing airport, currently serving 12 airlines and 46 destinations across the UK, Europe and the USA. It also operates an executive jet centre and its location, which is close to Canary Wharf and the City of London, makes London City Airport particularly convenient for business travellers.
GIP acquired its 75% interest in London City Airport through two successive transactions in 2006 and 2008 through its fund, Global Infrastructure Partners I.
Since its initial investment in London City Airport, GIP has implemented a program of investment and operational improvements aimed at increasing capacity, improving the facility’s operating efficiency and service quality, developing airline relationships and strengthening and expanding the airport’s network.
Under GIP’s ownership, London City Airport grew from 2.4 million passengers in 2006 to 4.3 million in 2015.
Adebayo Ogunlesi, Chairman and Managing Partner of GIP said: “GIP’s focus on operational improvements, on-time performance and airline partnerships has made London City Airport very popular with passengers. We congratulate the new owners and are sure that London City Airport will continue to flourish.”