Three leading retirement funds in Canada have joined forces in order to buy out an airport in London, United Kingdom.
The investment group, consisting of OMERS, Alberta Investment Corporation and Ontario Teachers’ Pension Plan, will purchase the airport from Highstar Capital and Global Infrastructure Partners, who currently own 25 per cent and 75 per cent stakes respectively.
In addition to the three Canadian pension fund giants, the group will also include Wren House Infrastructure Management and Kuwait Investment Authority.
The airport in question is London City Airport, the fourth largest in England’s capital city. It is positioned to the east of the centre of London, with Gatwick in the south and Heathrow in the west. Last year, the airport was used by 4.3 million passengers and is highly popular with city professionals.
It is not the first time that the group has made a move for a major European airport. In addition, it currently owns Copenhagen Airport, Brussels Airport, Bristol Airport, Birmingham Airport and Belfast International Airport.
The agreement’s financial terms have yet to be released. However, reports by the BBC place it’s value at around £2 billion (C$3.76 billion).