Global Infrastructure Partners will purchase AIG’s remaining stake in London’s City Airport reportedly for £250 million ($461 million, €315 million), making it the sole owner of the airport.
GIP purchased the airport alongside AIG Financial Products Corp. from Irish billionaire Dermot Desmond in December 2006 for about £750 million, according to media reports. A spokesman for GIP declined to comment.
The single runway airport primarily serves the City of London. Last year, it experienced traffic of 2.9 million passengers, representing a 23 percent increase over 2006 passenger levels.
GIP is a joint venture between Credit Suisse and GE Infrastructure. The firm closed its first infrastructure fund on $5.64 billion in May of this year. Besides City Airport, the fund has also invested in power generation plants, waste management companies, bulk storage terminals and ports.
The airport deal follows last month’s failed attempt by GIP and TPG to acquire Australian port and railroad operator Asciano Group for A$2.9 billion ($2.7 billion; €1.7 billion). Asciano rejected the offer, claiming that it undervalued its business.