Macquarie Asset Management is to become a 75% owner of London City Airport by acquiring Ontario Municipal Employees Retirement System’s (OMERS) and Alberta Investment Management Corporation’s (AIMCo) 50% stake in the UK airport.
The latest deal comes just months after Macquarie bought a 25% stake from another Canadian investor, Ontario Teachers’ Pension Plan.
Prior to Macquarie’s initial acquisition in June, London City Airport had been jointly owned since 2016 by a consortium of AIMCo, OMERS, Ontario Teachers and Kuwait’s Wren House Infrastructure Management, in a deal that was reportedly valued at up to £2bn (€2.6bn).
Macquarie, which acquired the stakes on behalf of its latest European infrastructure fund, for which it raised €8bn, also in June bought a 55% stake in Bristol Airport and a 26.5% interest in Birmingham Airport from Ontario Teachers.
London City Airport currently handles over 50,000 flights annually to more than 30 destinations across the UK and Europe.
Sara Sulaiman, managing director at Macquarie Asset Management in EMEA, said: “Our additional investment in London City Airport underscores our commitment to the UK’s aviation sector. Britain’s airports are a key driver of economic growth and demand for air travel continues to increase year-on-year.
“We look forward to working in partnership with London City Airport’s management team and Wren House Infrastructure, who will remain as shareholder, to support the airport in meeting future demand as it increases the number of passengers, launches new routes to destinations across the UK and Europe, and further enhances the experience for passengers.”
Alison FitzGerald, CEO at London City Airport, said: “London City Airport is already the airport everyone loves, recognised for delivering excellence in customer service alongside unrivalled speed and convenience.
“This further investment from Macquarie Asset Management is a strong endorsement of our strategy to introduce new larger, quieter and cleaner aircraft, deliver more route choices for our customers, benefit our airline partners, and contribute even more to the UK economy.”
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