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London City Airport sold to Canadian consortium for £2bn

Global Infrastructure Partners (GIP) has sold London City Airport to a Canadian consortium of investors for around £2bn.

The sale sees infrastructure investor GIP, which also boasts Gatwick and Edinburgh Airport in its portfolio, dispose of its 75% interest in the airport. Investment firm Highstar Capital have also agreed to sell their 25% stake.

The Docklands airport, which is London’s smallest and mainly serves business executives, was snapped up by a consortium that included the Ontario Teachers’ pension fund and Canadian investment firm AIMCo.

GIP purchased the airport in 2006 for around £750m, and since then has undergone rapid growth making it London’s fastest growing airport.

However, recent £220m expansion plans were nixed by the Mayor of London last March, which is likely to have influenced GIP’s decision to sell.

Adebayo Ogunlesi, Chairman and Managing Partner of GIP commented: “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.”

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