“We congratulate the new owners and are sure that London City Airport will continue to flourish”.
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“London has six airports, and passengers would think twice about how to get from A to B if one got more expensive”.
The airport has been courted by up to five different groups of bidders since it was put on the market by Global Infrastructure Partners (GIP) in August past year.
However, it remains London City Airport’s premium location and blue-chip business customers that attract investors.
The Canadian-led group, which also includes Kuwait Investment Authority, had vied with China’s HNA Group and Cheung Kong Infrastructure Holdings Ltd.to acquire the facility.
A consortium made up of Ontario Teachers’ Pension Plan (OTPP), Borealis, AIMCo and Wren House, an infrastructure investment vehicle owned by the sovereign wealth fund of Kuwait, are understood to have struck a deal to buy the airport from Global Infrastructure Partners (GIP), the giant private equity firm. Two years later, American International sold its stake to GIP and Highstar Capital, which now owns 25 percent.
The price for the deal has not been disclosed but Sky News, citing rumours based on the airport’s reputed value, says it would have been around £2bn.
In a statement on the airport’s website, the consortium was described as “international infrastructure operators, all with proven track records, which will bring significant financial and operational expertise to London City Airport”.
The plans were blocked by outgoing Mayor Boris Johnson previous year over concerns about noise pollution. According to reports, the expansion plan would have helped City Airport with serving 6.5 million travelers a year by 2023.
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The new owners claim that they are committed to “the responsible, long-term ownership and development of London City Airport to ensure its continued strong position and reputation as a key airport for London”.
