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Global Infrastructure Partners (GIP) and Oaktree Capital have announced the sale of London City Airport to a consortium comprising Ontario Teachers’ Pension Plan, Borealis Infrastructure, AIMCo and Kuwait Investment Authority’s Wren House Infrastructure Management.
Altitude provided comprehensive vendor due diligence to support the sale incorporating traffic, commercial and technical aspects. Our work included:
Detailed review of the London air traffic market, in depth analysis of demand from London City Airport’s core inner and outer catchments, competition with other London airports (including impact of capacity constraints) and analysis of key airline financial performance.
Analysis of historic financial performance including aeronautical revenue, non-aeronautical revenue, operating expenditure and EBITDA.
Identification of drivers of historical financial performance. Benchmarking of all aspects of revenues and operating costs against peer airport performance.
Detailed assessment of capacity for key processes and infrastructure requirements to meet the traffic forecasts.
Development of long term traffic, aeronautical revenue, non-aeronautical revenue, operating expenditure, EBITDA and capital expenditure forecasts.
Production of a comprehensive due diligence report.
The transaction had a reported enterprise value of ca. £2.0bn.
More information here.