Global Infrastructure Partners Hopes To Close A Deal By Year End

London City Airport, which is popular with the business community but also famous for its steep approaches, has been put up for sale by the U.S. private-equity fund that owns the airport.

Global Infrastructure Partners has owned the airport since 2006. Over the next two months, Michael McGhee, the head of transport at GIP, says that bankers to handle the transaction will be appointed and the process "should gain steam" in September.

The Wall Street Journal reports that, according to McGhee, London City Airport is its longest-held asset. The airport has a single 4,900 foot runway and is primarily a regional airport, though British Airways does operate twice-daily flights to New York with an A318 configured with just 32 business-class seats.

Expansion of London City has been locally popular, but not politically. An appeal of a political roadblock to expansion is expected to be decided by next year, and McGhee said it should not be an impediment to the sale.

There is also a minority partner. McGhee said the airport will be sold in its entirety, including the share owned by Oaktree Capital.

McGhee said that there are few airports that go on the market, so he expects London City will attract strong bids.

GIP also owns Gatwick and Edinburgh airports, and McGhee said the company would retain ownership of those two facilities.

(Image from file)

FMI: http://global-infra.com, http://www.londoncityairport.com/