Macquarie Asset Management to acquire Canadian Ontario Teachers’ Pension Plan airport stakes
London: Australian infrastructure giant Macquarie is on the cusp of acquiring significant stakes in three major UK airports, including London City, in a deal that could reshape the ownership landscape of British aviation.
According to industry sources cited by the Sunday Times, Macquarie Asset Management is finalising a multibillion-pound agreement with the Canadian Ontario Teachers’ Pension Plan (OTPP) to acquire its holdings in London City (25 per cent), Birmingham (27 per cent) and Bristol (55 per cent) airports.
While the precise valuation remains under wraps, OTPP’s broader European airport portfolio has been valued at more than £10 billion ($20.1 billion).
London City Airport is a key hub for business travel to and from the British capital.Credit: Bloomberg
The move would mark Macquarie’s return to the British aviation sector after the sale of its stakes in AGS Airports — Aberdeen, Glasgow and Southampton — earlier this year. It comes amid rising investor appetite for UK airports, fuelled by a post-COVID surge in passenger numbers and a government push to expand aviation capacity.
London City Airport, often favoured by business travellers, has been a focal point of this renewed interest. The East London hub received regulatory approval last August to increase its annual passenger cap from 6.5 million to 9 million, although a bid to extend its Saturday operating hours was rejected. In 2023, the airport saw traffic grow from 2.9 million to 3.4 million passengers.
The prospective acquisition underlines Macquarie’s positioning as a key foreign investor in UK infrastructure, even as its past ownership of Thames Water continues to draw political scrutiny.
The bank has faced criticism for its role in the financial and environmental woes of the utility, which is now battling mounting debts and public pressure over pollution.
Birmingham Airport helps facilitate budget and family travel from the British Midlands.Credit: Bloomberg
Despite this, Macquarie has emerged as an unlikely ally for Labour’s Chancellor Rachel Reeves, who is seeking to attract overseas capital to reinvigorate British infrastructure. The bank’s deepening presence in Britain has played into Labour’s narrative with its bosses reportedly bullish on the future of the UK economy and last October unveiled plans to invest £20 billion in Britain over the next five years.
