Leaked report shows falling value of Newcastle Airport
14.07.10
A North- East council could miss out on more than £2m because of delays in reaching agreement on the sale of its stake in Newcastle Airport, the Northern Echo reports. The leaked documents obtained by the newspaper show that the airport’s main owners intend to offer Darlington Borough Council between £300,000 and £500,000 for its share of the facility. Four years ago, the stake was valued at up to £2.9m, indicating a massive decline in the airport's value.
In 2006, the airport’s main owners, Newcastle Airport Local Authority Holding Group (LA7) and Copenhagen Airport, agreed to try to buy Darlington Council’s shareholding in the airport. It was then valued at between £2.6m and £2.9m. A fresh valuation at the beginning of 2008 estimated the shareholding to be worth between £1.5m and £1.8m because of money taken out during a refinancing.
In late 2008, a further valuation estimated Darlington’s share to be worth between £500,000 to £800,000. However, an alternative valuation based on the airport’s 2009 budget figures suggested Darlington’s shareholding was worth just £300,000 to £500,000.
