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London City Airport has reportedly been put up for sale as its Canadian pension fund owner looks to ditch its stake in a number of European hubs.
Ontario Teachers’ Pension Plan (OTPP) is in talks with minority shareholders over its stakes in Birmingham, Bristol, Copenhagen, Brussels and London City Airport, according to The Sunday Times. The fund owns stakes in each of the five airports ranging from 25 per cent to 70 per cent.
Shareholders in its portfolio, which could be worth more than £10bn, have a 30-day “right of first refusal,” but could also opt to sell.
OTTP has also begun exploring other suitors, including the Australian investment firm Macquarie, according to The Sunday Times.
Estimates of the value of any future deals are unclear, but it comes amid a boom in global aviation that has seen flight demand take-off across Europe.
The UK’s busiest airport Heathrow is expecting a record year of passenger traffic after a record summer. London Stansted also reported a record summer, welcoming close to 9m travellers between June and August.
Soaring demand for flights has come alongside a number of ownership changes at Britain’s major airports. City AM revealed last week that the Cabinet Office has approved a Saudi-French consortium’s bid to acquire a majority stake in Heathrow Airport from its Spanish owners.
Paris-based Vinci bought a 50.01 per cent holding in Edinburgh Airport in April, while AGS airports, which runs Aberdeen, Glasgow and Southampton, was sold to AviAlliance this month.
The deal also comes as a number of UK airports are working on expansion plans. City Airport itself was given the green light by the Labour government for an expansion that would see capacity increase from 6.5m to 9m passengers per year.
The Planning Inspectorate will pass its verdict to the government on Wednesday over the Sussex hub’s proposals for a £2.2bn second runway.
OTTP, London City Airport, Birmingham Airport and Bristol Airport all declined to comment.