Macquarie Agrees To Acquire Additional Stake In London City Airport

Macquarie Asset Management (Macquarie), via Macquarie European Infrastructure Fund 7 on behalf of long-term institutional investors including pension funds and insurance companies, has agreed to acquire a further 50 per cent equity stake in London City Airport from Alberta Investment Management Corporation and OMERS.

The acquisition takes Macquarie's total ownership in London City Airport to 75 per cent. In June, Macquarie announced it had agreed to acquire a 25 per cent stake in London City Airport from Ontario Teachers' Pension Plan.

London City Airport is London's most central airport, with direct transportation links to the city's two financial districts, the City of London and Canary Wharf. The airport handles more than 50,000 flights per year serving over 30 leisure and business destinations across the UK and Europe.¹

With the UK Government approving London City Airport's plans to increase passenger numbers to 9 million from the previous 6.5 million capacity², 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 airport³. The potential introduction of new aircraft is expected to expand the range of leisure destinations offered by London City Airport as well as 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: "London City Airport is already the airport everyone loves, recognised for delivering excellence in customer service alongside unrivalled speed and convenience. This further investment from Macquarie Asset Management 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."

Macquarie has been a leading owner of, and investor in, airports for more than 20 years. Its investments have included hub airports across Australia, Belgium, Italy, Denmark, Ecuador, and Colombia. Alongside the acquisition of a 25 per cent stake in London City Airport from Ontario Teachers' Pension Plan in June of this year, Macquarie acquired a 55 per cent stake in Bristol Airport, and a 26.5 per cent stake in Birmingham Airport. Last year, after a decade of ownership, Macquarie divested from AGS Airports, the owner and operator of the primary airports serving Aberdeen, Glasgow and Southampton. During its ownership, Macquarie and co-owner Ferrovial invested £250 million to deliver vital improvements to the airports.

Macquarie Group has operated in the UK for more than 35 years and has invested and arranged more than £65 billion in UK infrastructure since 1999. In October 2024, Macquarie announced its intentions to invest a further £20 billion in UK infrastructure.

The acquisition of the additional stake in London City Airport reached financial close at the time of signing. The previously announced acquisition of stakes in Bristol and Birmingham Airports are expected to reach financial close by end of October 2025. The terms of the transaction are undisclosed.

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