Macquarie, a prominent Australian company, secures a share in London City Airport, marking its expansion in the U.K. aviation sector.
Catch the Latest: Macquarie Inching Closer to Owning a Piece of London City Airport
The Australian financial heavyweight, Macquarie, is reportedly on the brink of securing a piece of London City Airport - the city's fifth largest - in a broader restructuring of the airport's ownership.
Rumors swirl that Macquarie Asset Management is close to sealing a deal to buy a minority interest in the Docklands airport from at least one of its Canadian shareholders.
Industry insiders suggests that London City Airport might announce changes to its shareholder base as early as this week. However, the Macquarie deal could take a bit more time to finalize, they add.
The exact valuation of the agreement remains unclear. Earlier reports hinted towards Omers and AIMCO, two Canadian pension funds, considering the sale of their interest in the London airport, with Macquarie as a potential buyer of the 25% stake owned by Ontario Teachers' Pension Plan (OTPP).
While nothing is confirmed, Macquarie has established itself as a frequent investor in UK airports, having recently announced the sale of AGS - encompassing Aberdeen, Glasgow, and Southampton airports.
As for London City Airport, it's seeking regulatory concessions to speed up its growth, with UK aviation capacity being a crucial aspect on the country's economic agenda.
Neither London City Airport, Macquarie, nor OTPP commented on the matter when contacted.
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London City Airport recently got the green light to boost passenger numbers from 6.5 million annually to 9 million, but its bid to extend Saturday operating hours was denied. In the pursuit of growth, it's now seeking additional regulatory concessions. Despite the buzz surrounding Macquarie and London City Airport, Macquarie's recent aviation investments have not focused on this specific asset, and no public, recent developments have confirmed the acquisition or significant stake purchase by Macquarie.
Currently, other UK airports and the broader transport infrastructure sector are the focus of major investors, with Macquarie recently in the news for talks to acquire bingo clubs, not airport assets. Nevertheless, if a major infrastructure investor like Macquarie were to acquire a stake in London City Airport, it could signal increased investment in terminals, technology, and operational improvements, boosting airport capacity and efficiency. However, with the latest available information, such a scenario does not seem imminent.
The speculations of Macquarie Asset Management acquiring a minority interest in London City Airport might indicate a potential shift in the financing of the city's fifth largest airport. In the midst of Macquarie's investments in UK airports, a possible acquisition could spark War-like competition among investors, potentially leading to enhancements in the airport's terminal, technology, and operational structures.
