A consortium of Canadian and Kuwaiti investors has signed an agreement with American fund Global Infrastructure Partners to acquire London City Airport in a deal that is reported to be worth nearly £2 billion ($2.8 million), said a report.  

The airport, which is located in the Royal Docks, in the London Borough of Newham, is a highly attractive infrastructure investment in the UK. It is the closest air hub to the financial capital of Europe.

The consortium includes Alberta Investment Management Corporation, Omers, Ontario Teachers’ Pension Plan (OTPP) and Wren House Infrastructure Management Limited, the infrastructure investing arm of the Kuwait Investment Authority.

All of these international infrastructure investors have a proven track record, which will bring significant financial and operational expertise to London City Airport, said a statement from Alberta Investment Management Corporation.

The price paid has not been disclosed, but the airport's value has been put at about £2 billion, reported local media.

London City Airport represents a unique opportunity to invest in an integral part of the London airport system and offers a service proposition based around location, convenience, speed and customer service.

Located near Canary Wharf in London's Docklands, it is popular with bankers and city professionals because of its proximity and its small size.

It is also easily connected through the Docklands Light Railway service to the airport, as well as road links.

Since the acquisition of its controlling stake by Global Infrastructure Partners in 2006, London City Airport has successfully grown passenger numbers from 2 million in 2005 to 4.3 million in 2015, with an 18.3 per cent increase in the last year alone.

The consortium members said they were 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.

They 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.

The consortium has a strong track record of investing in and growing excellent businesses, maintaining good relationships with customers, staff, management, regulators and other stakeholders, said its spokesman.

"Working together with management and local authorities, the consortium will support the enhancement of facilities and build on the airport’s successful track record," he stated.

He described London City Airport as a premium infrastructure company, operating in a very attractive market.

"We look forward to working closely with the airport’s strong management team to achieve the business’s full long-term potential," stated the spokesman.

"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," he added.-TradeArabia News Service