Ontario Teachers' Pension Plan has announced the acquisition of an additional stake in Birmingham Airport (BHX) from Victorian Funds Management Corporation (VFMC). The purchase of VFMC's 19.25% ownership increases Teachers' holding in BHX to 48.25% from the current 29%.
Terms of the transaction are not being disclosed. Teachers' made its initial investment in the airport in 2001 and increased its stake in 2007.
BHX is located within the second largest city in the United Kingdom and serves approximately 9.5 million passengers per year. Seven local district councils will continue to hold a significant ownership position in BHX.
Teachers' investment is led by its Infrastructure Group, which manages a global portfolio of $11.7 billion of direct infrastructure investments, including water and wastewater, electricity distribution, gas distribution, power generation, high-speed rail and port facilities. Airport investments include Bristol, Copenhagen and Brussels.
Andrew Claerhout, Senior Vice-President, Infrastructure, said:
"Birmingham Airport is a high-quality asset that we know well. It has good growth prospects and we look forward to working with our partners to strengthen its position as a key regional airport in the UK. Increasing our investment reflects our strategy of continuing the development of our airports platform."
Paul Kehoe, CEO of BHX, said:
"Teachers' has demonstrated strong support for our airport for more than a decade, enabling various enhancements and expansion. We will continue to work with Teachers' and the District Shareholders with the shared goal of developing Birmingham Airport's connectivity to benefit both the region and the UK as a whole."