Australian investor Macquarie acquires controlling stake in London City Airport

Macquarie Asset Management has agreed to acquire a further 50% equity stake in London City Airport from Alberta Investment Management Corporation and OMERS.

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The acquisition, via Macquarie European Infrastructure Fund 7 on behalf of long-term institutional investors including pension funds and insurance companies, takes Macquarie’s total ownership in London City Airport to 75%. In June, Macquarie acquired its initial 25% stake in the airport from Ontario Teachers’ Pension Plan.

London City Airport, located in Newham’s Royal Docks close to Canary Wharf, handles more than 50,000 flights per year serving over 30 leisure and business destinations across the UK and Europe.

With the UK Government approving London City Airport’s plans to increase passenger numbers to 9m from the previous 6.5m capacity, the airport is well-positioned to grow London’s aviation market.

To enable the increased passenger numbers with fewer flight movements, London City Airport has applied to the Civil Aviation Authority for approval to operate a broader range of aircraft from the airport.

The introduction of new aircraft, says the airport, would expand the range of leisure destinations and accelerate the transition of airlines’ fleets to more sustainable, quieter new generation aircraft.

Sara Sulaiman, a Managing Director at Macquarie Asset Management in EMEA, said, “Our additional investment in London City Airport underscores our commitment to the UK’s aviation sector. Britain’s airports are a key driver of economic growth and demand for air travel continues to increase year-on-year. We look forward to working in partnership with London City Airport’s management team and Wren House Infrastructure, who will remain as shareholder, to support the airport in meeting future demand as it increases the number of passengers, launches new routes to destinations across the UK and Europe, and further enhances the experience for passengers.”

Alison FitzGerald, Chief Executive Officer at London City Airport, said, “This further investment is a strong endorsement of our strategy to introduce new larger, quieter and cleaner aircraft, deliver more route choices for our customers, benefit our airline partners, and contribute even more to the UK economy.”

Alongside the investment in London City Airport, Macquarie acquired a 55% stake in Bristol Airport, and a 26.5% stake in Birmingham Airport. Last year, after a decade of ownership, Macquarie with co-owner Ferrovial divested from AGS Airports, the owner and operator of Aberdeen, Glasgow and Southampton airports.

Macquarie Group, the Australian multinational investment banking and financial services group, has operated in the UK for more than 35 years and has invested and arranged more than £65bn in UK infrastructure since 1999. In October 2024, it announced its intentions to invest a further £20bn in UK infrastructure.