The company is a consortium made up of AIMCo, OMERS, Ontario Teachers’ Pension Plan and Wren House Infrastructure Management Limited, the infrastructure investing arm of the Kuwait Investment Authority.
London City Airport is currently owned by Global Infrastructure Partners (GIP), which has a 75% stake in the gateway, and Highstar Capital with a 25% interest.
The transaction is not subject to any regulatory approvals and is expected to close on March 10, 2016.
London City Airport is London’s fastest growing airport, currently serving 12 airlines and 46 destinations across the UK, Europe and the USA.
It also operates an executive jet centre and its location, which is close to Canary Wharf and the City of London, makes London City Airport particularly convenient for business travellers.
GIP acquired its 75% interest in London City Airport through two successive transactions in 2006 and 2008.
Since its initial investment in London City Airport, GIP has implemented a programme of investment and operational improvements aimed at increasing capacity, improving the facility’s operating efficiency and service quality, developing airline relationships and strengthening and expanding the airport’s network.
Under GIP’s ownership, London City Airport grew from 2.4 million passengers in 2006 to 4.3 million in 2015.
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.
"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 new owners reveal that they are 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.
According to a statement issued today, the consortium's partners have 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.
“London City Airport is a premium infrastructure company, operating in a very attractive market," says a spokesman.
"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.”
While Adebayo Ogunlesi, chairman and managing partner of GIP says: “GIP’s focus on operational improvements, on-time performance and airline partnerships has made London City Airport very popular with passengers. We congratulate the new owners and are sure that London City Airport will continue to flourish.”