According to sources, Global Infrastructure Partners (GIP) has launched the sale of its 75% stake in London City Airport.
The remaining 25% stake is owned by Oaktree Capital. According to sources the firm has agreed to sell its stake as well. The deal could be closed for an amount of £2 billion (US$3.12 billion).
London City Airport is located in the Royal Docks in the London Borough of Newham, some 11 km east of the City of London. It has a single 1,500 m long runway and due to its proximity to the City, mainly serves business travellers.
In 2014, London City served 3.6 million passengers, an 8% increase compared with 2013 and a record total for the airport. It was the fifth busiest airport in passengers and aircraft movements serving the London area after Heathrow, Gatwick, Stansted and Luton and the 15th busiest in the UK. A total of 10 airlines operate flights to 50 European destinations, as well as a New York service.
GIP bougth its stake in the east London airport from Irish businessman Dermot Desmond for £750 million (US$1.17 billion) in 2006. GIP also bought 42% of Gatwick Airport, UK's second busiest airport, in 2009 for £1.5 billion and Edinburgh Airport in 2012 for £800 million.