Macquarie to Acquire Stakes in Three UK Airports
The UK government’s decision to privatise some of the airports received a big boost with Australia’s Macquarie Asset Management (Macquarie), on Thursday said that it has agreed to acquire stakes in three airports Bristol, Birmingham and London City Airports, through Macquarie European Infrastructure Fund 7 on behalf of long-term institutional investors including pension funds and insurance companies.
Macquarie European Infrastructure Fund 7 is the industry’s largest-ever fund focused on European infrastructure, and the seventh vintage of Macquarie’s successful European Fund series.
Since 2004, the Macquarie European Infrastructure Fund series has committed more than $32.17 billion of capital across the UK and Europe, in addition to capital committed by other Macquarie-managed funds and strategies in the region.
The London City Airport acquisition has reached financial close at the same time as signing while the deals for the Bristol and Birmingham airports are expected to reach financial close by Q4 of 2025 following the satisfaction of regulatory approvals. The terms of the transaction are undisclosed.
The acquisition from Ontario Teachers’ Pension Plan will see Macquarie acquire a 55% stake in Bristol Airport, the largest in the South-West of England and has historically been one of the fastest growing regional airports in the UK. Bristol airport serves around 10 million passengers each year and operates routes to 115 destinations, contributing approximately $2.68 billion to the regional economy per annum.
Macquarie will be acquiring 26.5% stake in Birmingham Airport, the UK’s seventh largest airport, handling approximately 13 million passengers a year. Situated in the heart of the country’s Midlands, the airport is accessible to over half of the population of England and Wales within a 2-hour rail or road journey, and is home to around 30 carriers, serving over 140 direct international routes and supporting an estimated 30,000 jobs in the region.
The Australian company will acquire 25% stake in London City Airport, which is London’s most central airport, providing excellent transportation links to the city’s two financial districts, the City of London and Canary Wharf. London City Airport handles over 3.5 million passengers per year and serves over 30 leisure and business destinations across the UK and Europe, employing more than 2,000 staff on site.
Each of the three airports offer unique propositions and catchment areas which present significant growth opportunities for airlines and a wide range of business partners. Through its investment, Macquarie is committed to supporting the airports over the long term to expand their route networks, further enhance passenger experience, and work closely with management teams and stakeholders to implement the airports’ sustainability strategies.
Unique Growth Path Ahead
Gordon Parsons, a Senior Managing Director at Macquarie Asset Management in EMEA, said that as a leading investor in airports around the world, including the UK, they understand their importance to local communities and for economic growth.
“Collectively, Birmingham, Bristol and London City airports serve over 25 million passengers each year and are a valued home for leading regional and global airlines. Each airport has a unique path for growth ahead, and we are supportive of the management teams’ plans to deliver enhanced customer experiences and more routes to each of the communities they serve. We will play our part, as a long-term investor, to support all three airports on their development in the years to come,” he said.
Macquarie has been a leading owner of, and investor in, airports for more than 20 years. Its investments have included hub airports across Australia, Belgium, Italy, Denmark, Ecuador, and Colombia.
Last year, after a decade of ownership, Macquarie divested from AGS Airports, the owner and operator of the primary airports serving Aberdeen, Glasgow and Southampton. During its ownership, Macquarie in partnership with Ferrovial invested $335.15 million to deliver vital improvements to the airports including a $12.07 million investment to rejuvenate infrastructure at Glasgow Airport to accommodate all wide-body aircraft, and a $22.79 million runway extension at Southampton Airport, which opened in 2024, allowing for the airport to be able to operate larger aircraft and diversify its airline base.
