US private equity firm Global Infrastructure Partners (GIP) that owns a 75% stake in the London City Airport is reportedly planning to put it up on sale.
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The remaining 25% of the airport is owned by Oaktree Capital.
Having acquired the airport for £750m in 2006 from Irish financier Dermot Desmond, the company is currently in the process of appointing advisers for the sale.
GIP, which also has stakes in London Gatwick and Edinburgh airports, intends to complete the sale by the end of the year.
The Financial Times quoted sources as saying that the airport could be valued at £2bn.
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By GlobalDataLocated in the Royal Docks in Newham, around seven miles from London’s business district, the airport primarily caters to business travellers. Along with operating flights to European cities, the airport also offers a twice-daily flight to New York.
GIP transport head Michael McGhee was quoted by the Wall Street Journal as saying: "At the moment, the demand for quality infrastructure assets is high, so we believe it is a good time to sell this particular asset."
The airport is said to be involved in a battle to secure an approval to execute a £200m expansion project.
This expansion is expected to increase its capacity to six million passengers by 2023.
However, the expansion application was recently rejected by London Mayor Boris Johnson over concerns of noise pollution.
Image: The London City Airport could be valued at £2bn in the sale. Photo: courtesy of London City Airport.
