Australian infrastructure investor Macquarie is nearing a multibillion-pound agreement for stakes in London City, Birmingham, and Bristol airports.
According to the Sunday Times, Macquarie is finalising terms with the Canadian pension fund Ontario Teachers’ Pension Plan (OTPP), which owns a 25% stake in London City, 27% of Birmingham, and 55% of Bristol Airport.
However, the deal still faces several obstacles, including the bankruptcy of Birmingham City Council, the airport’s co-owner, in 2023.
Sources cited by the Sunday Times indicate that Macquarie is “close to an agreement” but cautioned that there was no guarantee the deal would be completed.
All parties involved have been approached for comment, with Macquarie, London City, and Birmingham Airport declining to respond.
This development comes as the UK airport sector experiences increased investor interest due to surging travel demand in the post-Covid era.
Recently, Paris-based Vinci acquired a 50.01% stake in Edinburgh Airport, while AGS airports, which operates Aberdeen, Glasgow, and Southampton, was sold to AviAlliance.
London City Airport, a hub popular among City executives, reported an increase in passenger traffic last year from 2.9m to 3.4m and received approval for a significant capacity expansion last August.
Last November, The Sunday Times reported that OTPP had engaged in discussions to divest its stake in five European airports, including Copenhagen and Brussels airport, both of which have since been sold.
The valuation of the three UK airports by Macquarie has not yet been disclosed, as reported by City AM.
OTPP’s entire airport portfolio is valued at over £10bn.
