Member Article

London City airport owner expected to profit £1bn from sale

Global Infrastructure Partners, the majority owner of London City airport, is set to profit more than £1bn after the proposed sale of the facility, The Guardian reports.

The private equity partner, which acquired the east London airport for £750m in 2006, has announced plans to sell its 75% stake in the facility which is rumoured to be worth around £2bn.

The remaining stakeholder, held by Oaktree Capital, is also expected to be sold.

A spokesman for City airport said: “There is an enormous amount of potential in LCY and the market for quality assets, and particularly airport assets, is strong. It is the right time to sell for the investors.”

The airport, which hosts ten airlines including flights to New York, handled 3.65 million passengers last year and is expected to exceed 4.1 million this year.

According to The Guardian, the sale process will “not affect operations or expansion plans” as the facility is currently trying to secure planning permission for a £200m expansion.

This was posted in Bdaily's Members' News section by Ellen Forster .