Left: Design rendering of London City Airport’s £200m (US$310m) development plan
US-based private equity firm Global Infrastructure Partners (GIP) has announced its intentions to sell London City Airport in the UK. The firm has owned the airport since 2006 and also holds stakes in London Gatwick and Edinburgh airports.
GIP purchased London City Airport for an estimated £750m (US$1.16bn) in 2006 from Irish financier Dermot Desmond, who paid just £23.5m (US$36.4m) for the airport in 1995 from UK construction group Mowlem. The group said it was now in the process of appointing advisers with the aim of selling the airport this year.
According to a report by the Financial Times, Michael McGhee, director for transport at GIP, unveiled the news during an interview claiming that the market conditions were favorable to sell. The report also stated that the airport could fetch as much as £2bn (US$3.1bn), although this figure could be less after London mayor Boris Johnson quashed a £200m (US$310m) development plan earlier this year.
To read more from the report by the Financial Times click here.