London City Airport sold to consortium for estimated £2billion
10:24 26 February 2016
London City Airport has been sold to a Canadian-led consortium for an estimated £2billion.
The deal involves Alberta Investment Management Corporation, Ontario Teachers’ Pension Plan, Borealis and Wren House.
The latter is a Kuwait-owned infrastructure investment vehicle, while the other three are Canadian pension funds.
The price paid for the airport, in the Royal Docks, has not been disclosed but it was estimated to be worth around £2bn when Global Infrastructure Partners put it up for sale in the summer.
Declan Collier, CEO, London City Airport said: “I’m delighted to welcome the consortium as the new owners of the only airport actually in London.
“London City Airport is a successful business with huge opportunities for growth - opportunities that will create jobs, generate more benefit for the UK economy and build new connections to and from London to commercial centres around the world.
“GIP’s ownership has turned the airport into the award-winning and record-breaking business that it is today, and I look forward to working with the new shareholders, as responsible, long-term investors, to build on that success for the future.”
A spokesperson for the Consortium said: “London City Airport is a premium infrastructure company, operating in a very attractive market.
“We look forward to working closely with the airport’s strong management team to achieve the business’s full long-term potential.
“Our investment and support will foster a mutually beneficial relationship between the airport and its airlines, passengers and employees, while ensuring a positive economic impact for all of London and the local community, in particular.”
The airport saw a record 4.3million passengers pass through its gates last year.