Consortium buys London City Airport
Alberta Investment Management Corporation, on behalf of its clients (“AIMCo”), OMERS, Ontario Teachers’ Pension Plan (“OTPP”) and Wren House Infrastructure Management Limited (“Wren House”), the infrastructure investing arm of the Kuwait Investment Authority, (each a “Consortium Member” and collectively the “Consortium”), is pleased to announce that it has signed an agreement to acquire the company that owns and operates London City Airport.
The Consortium consists of international infrastructure investors, all with proven track records, which will bring significant financial and operational expertise to London City Airport. Financial details of the transaction have not been disclosed.
London City Airport, which is located in the Royal Docks, in the London Borough of Newham, is a highly attractive infrastructure investment in the UK. The airport represents a unique opportunity to invest in an integral part of the London airport system and offers a service proposition based around location, convenience, speed and customer service. London City Airport is located in close proximity to Canary Wharf, the City of London and the West End, and is easily connected through the Docklands Light Railway service to the airport, as well as road links.
Since the acquisition of its controlling stake by Global Infrastructure Partners in 2006, London City Airport has successfully grown passenger numbers from 2 million in 2005 to 4.3 million in 2015, with an 18.3% increase in the last year alone.
The Consortium is 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. Working together with management and local authorities, the Consortium will support the enhancement of facilities and build on the airport’s successful track record.
As part of its investment, over the long-term, the Consortium is dedicated to developing existing and new airline relationships and routes, improving the airport’s already excellent customer service, and generating opportunities for new and existing employees.
The Consortium has proven experience as long-term owners and operators of UK and European airports, as evidenced by selected members’ current ownership of Belfast International Airport, Birmingham Airport, Bristol Airport, Brussels Airport and Copenhagen Airport, and historical investments in Rome Airport and Sydney Airport. The Consortium has a strong track record of investing in and growing excellent businesses, maintaining good relationships with customers, staff, management, regulators and other stakeholders.
A spokesperson for the Consortium said: “London City Airport is a premium infrastructure company, operating in a very attractive market. We look forward to working closely with the airport’s strong management team to achieve the business’s full long-term potential. Our investment and support will foster a mutually beneficial relationship between the airport and its airlines, passengers and employees, while ensuring a positive economic impact for all of London and the local community, in particular.”
