Macquarie Increases London City Airport Stake to 75%

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 transaction increases Macquarie’s total ownership in London City Airport to 75%. In June, Macquarie disclosed it had agreed to acquire a 25 per cent stake from Ontario Teachers’ Pension Plan.

London City Airport sits at the heart of London, with direct links to the City and Canary Wharf. It handles more than 50,000 flights annually and serves over 30 destinations across the UK and Europe.

With the UK Government approving plans to raise passenger numbers to 9 million from a prior 6.5 million capacity, the airport is positioned to grow London’s aviation market. To support increased passenger volumes with fewer flights, London City Airport has sought approval from the Civil Aviation Authority to operate a broader mix of aircraft. The planned introduction of new, larger, quieter aircraft is expected to broaden leisure routes and accelerate fleet modernization in the region.

Sara Sulaiman, Managing Director, Macquarie Asset Management, EMEA, commented: “Our additional investment in London City Airport underscores our commitment to the UK aviation sector. British airports are a key driver of growth, and we look forward to partnering with London City Airport’s management team and Wren House Infrastructure, who will remain as shareholders, to support future demand and route expansion.”

Alison FitzGerald, Chief Executive Officer, London City Airport, added: “Our airport is loved for its service, speed and convenience. This equity support from Macquarie reinforces our strategy to bring larger, cleaner aircraft and more routes to customers and airline partners while contributing to the UK economy.”

Macquarie Group has been a prominent owner and investor in airports for over two decades, including hubs across Australia, Europe and the Americas. Following the June agreement for a 25% stake from Ontario Teachers’ Pension Plan, Macquarie also holds a 55% stake in Bristol Airport and a 26.5% stake in Birmingham Airport. Last year, Macquarie exited AGS Airports, which serves Aberdeen, Glasgow and Southampton. During its ownership period, Macquarie and co-owner Ferrovial invested about £250 million to upgrade airports in the portfolio.

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 signaled further investment of around £20 billion in UK infrastructure.

The deal closed at signing. The previously announced acquisitions of stakes in Bristol Airport and Birmingham Airport are expected to close by the end of October 2025. The terms of the current transaction remain undisclosed.