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NEWS Last modified on January 2, 2015

Pension fund raises stake in UK's Birmingham Airport

Canada's Ontario Teachers' Pension Plan has bought a 19.25% stake in the UK's Birmingham Airport, according to reports.

Reuters explains it has purchased the stake from Australia's Victorian Funds Management Corporation, taking its investment in the British airport to 48.25%.

The investment was led by Ontario Teachers' Infrastructure Group, which manages a global portfolio of $11.7 billion (€9.7 billion) of investments, and its other airport investments include Bristol, Copenhagen and Brussels.

The Canadian pension fund wants to strengthen Birmingham position as a regional hub in the UK by tapping into its capacity of around 9.5 million passengers per year, and is the UKs seventh busiest airport

Ontario Teachers first invested in Birmingham Airport in 2001, and then acquired a joint 48.25% stake with Victorian Funds Management (VFM) for £420 million (€538 million) in 2007 when Macquarie Airports Group and Aer Rianta made a full exit.

The pension fund has given no financial details of its latest stake purchase, according to Reuters, and says seven West Midlands district councils have kept a significant ownership of Birmingham and will continue investing alongside Ontario Teachers.

The gateway’s chief executive, Paul Kehoe, is reported by Retuers as explaining the shared goal is to develop connectivity to Birmingham to benefit both the region and UK as a whole.

Ontario Teachers' is the largest single-profession pension plan in Canada, and pays pensions and invests on behalf of 307,000 working and retired teachers in Ontario.

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