A consortium formed by Borealis Infrastructure, Alberta Investment Management Corporation (AimCo), Kuwait’s Wren House Infrastructure Management (the infrastructure investing arm of the Kuwait Investment Authority) and Ontario Teachers’ Pension Plan (OTPP) has signed an agreement to acquire the company that owns and operates London City Airport.

Although terms of the transaction have not been announced, the transaction could have been closed for around £2 billion (US$2.79 billion) or a multiple of 27 times its EBITDA of £71.5 million (US$99.7 million) in 2015.

The airport is located in the Royal Docks in the London Borough of Newham, some 11 km east of the City of London. It has a single 1,500 m long runway and due to its proximity to the City, mainly serves business travellers.

Since the acquisition of its controlling stake by Global Infrastructure Partners (GIP) in 2006, London City Airport has successfully grown passenger numbers from 2 million in 2005 to 4.3 million in 2015, with an 18.3% increase in the last year alone. Global Infrastructure Partners (GIP), through its fund Global Infrastructure Partners I, and Oaktree Capital are selling their 75% and 25% stakes respectively.

The winning bidder beat out competition from a consortium led PSP Investments, Chinese conglomerate HNA and Cheung Kong Infrastructure Holdings.

A spokesperson for the consortium said:

“London City Airport is a premium infrastructure company, operating in a very attractive market. We look forward to working closely with the airport’s strong management team to achieve the business’s full long-term potential. Our investment and support will foster a mutually beneficial relationship between the airport and its airlines, passengers and employees, while ensuring a positive economic impact for all of London and the local community, in particular.”