Macquarie Set to Acquire Three Major UK Regional Airports in Multibillion Pound Deal

Australian infrastructure giant Macquarie is on the verge of securing a landmark multibillion-pound acquisition of Birmingham, Bristol, and London City airports. The deal, currently in its final stages, would see Macquarie purchase significant stakes from the Ontario Teachers’ Pension Plan (OTPP), marking a substantial shift in UK regional airport ownership.

The complex transaction involves varying ownership stakes across the three airports: 27% of Birmingham, 55% of Bristol, and 25% of London City. The deal’s intricacy is heightened by Birmingham Airport’s unique situation, where the city council, which declared bankruptcy in 2023, remains a co-owner.

These regional transport hubs have demonstrated robust passenger numbers, with Birmingham and Bristol serving as the UK’s seventh and eighth largest airports respectively. Birmingham Airport welcomed 12.8 million passengers last year and recently secured a £230 million refinancing package to expand its capacity to 18 million passengers annually.

The move aligns with Macquarie’s broader UK investment strategy, following their October 2024 announcement to invest £20 billion in Britain over five years. Despite facing criticism over their previous ownership of Thames Water, the Australian bank has positioned itself as a significant supporter of UK infrastructure development.

Sources close to the negotiations indicate that while Macquarie is “close to an agreement,” the final valuation remains undisclosed. The original OTPP portfolio, which included Copenhagen and Brussels airports, was valued at over £10 billion collectively.

The transaction represents a strategic exit for OTPP, which acquired London City airport as part of a £2 billion consortium deal in 2016. The Canadian fund’s decision to divest comes as part of a broader restructuring of its European airport holdings, having already completed sales of its Copenhagen and Brussels airport stakes.