GIP considers London City Airport sale
22.01.12
The new chief executive of London City has been told by its owner to review sale options when he starts in the spring, the Independent reports. Declan Collier, who joins from Dublin airport, has been asked by Global Infrastructure Partners (GIP), which also own Gatwick, to look at a potential sale in his first months in the job. Investment banking advisers could be selected by the end of the year. Other options include syndicating the equity as GIP did for Gatwick in 2010. The newspapers 'sources close to GIP' said it would like to be able to sell quickly when market conditions improve.
At present, GIP would struggle to get much more than the £742m that it paid for London City near the top of the market in 2006, despite significant operational improvements. In a buoyant market, GIP and the current minority stake partner Highstar Capital think it could be sold for as much as £1.25bn. The source said: ‘Timing is the only thing that matters. There are different ways of exiting – GIP looks at what happened with Gatwick and selling slices as a successful model.’
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