According to tonight’s ft.com, GIP (a US fund) has decided to sell London City airport (LCY) which it has owned since 2006.
“People familiar with the business suggest it could fetch as much as £2 billion” says the FT. A price of £2 billion would be 60 x EBITDA.
“GIP acquired LCY for an estimated £750 million in 2006 from Dermot Desmond, the Irish financier, who paid just £23.5 million for LCY in 1995 from Mowlem, the UK construction group.”
“Passenger numbers at LCY have doubled from 2 million in 2005 to an estimated 4.1 million this year.”
But LCY’s price tag might be limited because its expansion plans which, although initially approved by Newham Council, were later blocked by London mayor Boris Johnson as Business Traveller reported (see Online News, March 27, 2015).