London’s City airport is reportedly being sold by its American owners in a deal that could be worth £2bn.
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GIP, which has owned the airport since 2006, said it is appointing advisers with the target to complete the sale of the airport in 2015.
The US fund, which also has stakes in London Gatwick and Edinburgh airports, is trying to capitalise on the rising demand for air travel from business travellers, and the strategic location of the airport. Oaktree Capital, which owns a 25% stake, is happy to go ahead with the sale.
Michael McGhee, GIP director for transport, told the FT market conditions were favourable for a sale.
John Stewart, the chair of HACAN East, said, “When Crossrail opens Docklands and the City of London, the key business markets London City serves, will be within half an hour of Heathrow”.
It is just 22 minutes from Bank station and is closer to the financial centre at Canary Wharf.
However, this could be limited by the failure earlier this year to win approval for an £200m expansion.
The airport is battling for planning permission for a £200 million expansion that would add seven new aircraft stands and help boost its passenger numbers to 6 million by 2023.
GIP has argued that expanding the airport was essential to its future in allowing it to fly to more distant destinations.
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These plans were passed by Newham Council in February, but blocked by London mayor Boris Johnson the following month due to noise concerns.
