Macquarie Asset Management has taken control of London City Airport (LCY) after acquiring an additional 50% equity stake, increasing its total ownership to 75%.
The purchase was made through Macquarie European Infrastructure Fund 7 on behalf of long-term institutional investors including pension and insurance funds. The shares were acquired from Alberta Investment Management Corporation and Canadian pension fund OMERS, following Macquarie’s earlier acquisition of a 25% stake from Ontario Teachers’ Pension Plan in June.
Wren House, the infrastructure investment arm of the Kuwait Investment Authority and part of the consortium that bought Global Infrastructure Partners’ controlling interest in LCY in 2016, will retain its 25% stake in the airport.
Financial terms of Macquarie’s latest transaction were not disclosed, but the firm says the deal is part of its £20 billion ($26.7 billion) investment program in UK infrastructure, announced last year. The fund manager has also agreed to acquire majority stakes in Bristol Airport (55%) and Birmingham Airport (26.5%), with both transactions expected to close by the end of October 2025.
“Our additional investment in London City Airport underscores our commitment to the UK’s aviation sector,” says Sara Sulaiman, managing director at Macquarie Asset Management in Europe, the Middle East and Africa. “Britain’s airports are a key driver of economic growth, and demand for air travel continues to increase year on year.”
LCY is London’s most central airport, located close to Canary Wharf and the City of London. It handles more than 50,000 flights annually. According to OAG Schedules Analyser data, the airport is currently served by nine airlines, led by BA Cityflyer with a 63% share of departure seats, followed by ITA Airways (9.8%) and KLM (9.3%).
The UK government recently approved the airport’s plans to increase passenger capacity to 9 million per year, up from the current 6.5 million limit. To accommodate this growth with fewer flight movements, LCY has applied to the UK Civil Aviation Authority for approval to operate a broader range of aircraft types, including the Airbus A320neo family.
The ability to handle larger and longer-range aircraft such as the A320neo would open up new route opportunities—but achieving this requires regulatory approval. The airport’s steep approach angle, combined with its short, 1,508-m runway and urban location, mean that only certain aircraft types and specially certified pilots can operate there. This includes the Airbus A220-100, Embraer E190-E2 and the 195-E2, the latter of which began operating from the airport in March. Embraer aircraft account for around 85% of aircraft movements at LCY.
“This further investment from Macquarie Asset Management is a strong endorsement of our strategy to introduce new larger, quieter and cleaner aircraft, deliver more route choices for our customers, benefit our airline partners and contribute even more to the UK economy,” LCY CEO Alison FitzGerald says.
Macquarie has been an investor in airports for more than two decades, with holdings in Australia, Belgium, Italy, Denmark, Ecuador and Colombia. In 2024, after a decade of ownership, Macquarie divested from AGS Airports, the operator of Aberdeen, Glasgow and Southampton airports, after investing £250 million in infrastructure upgrades alongside co-owner Ferrovial.
The LCY transaction comes amid a wider surge of investment in UK airport infrastructure. In August, investment firm ICG agreed to acquire Regional & City Airports—operator of Bournemouth, Exeter and Norwich airports—in a deal reportedly valued at £200 million.
Azerbaijan’s State Oil Fund also entered the market this month with a £50 million investment in London Gatwick Airport alongside U.S.-based Global Infrastructure Partners. Meanwhile, French investor Ardian increased its stake in London Heathrow earlier this year.
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