Abu Dhabi Swoops For Gatwick Stake
Mark Kleinman February 04, 2010 8:06 PM
The Abu Dhabi Investment Authority (ADIA), the world's biggest sovereign wealth fund, is to buy up to 15 per cent of Gatwick Airport, I can reveal.
As I've just told Anna Jones, ADIA's move follows a similar transaction earlier in the week which saw the National Pension Service of South Korea acquire a 12 per cent shareholding in London's second-biggest airport.
The stakes have been sold by Global Infrastructure Partners (GIP), which bought Gatwick for just over £1.5bn a couple of months ago. GIP is a joint venture between Credit Suisse and General Electric.
ADIA's purchase is likely to be disclosed in a filing with the European Commission within the next few weeks, according to people close to the situation.
I understand that GIP plans to sell at least two more of these minority stakes in Gatwick, and the diverse geographical spread of the buyers underlines the continuing appeal of infrastructure assets such as airports for cash-rich investors. GIP will retain a controlling stake in Gatwick as well as management and operational control of the airport.
As Anna pointed out on the show, the sale of these stakes comes as GIP looks to introduce a new elements of competition into London's airports market by providing a level of service to both passengers and airlines that will tempt them to switch from Heathrow, Luton or Stansted.
ADIA's investment - which by my calculations will cost it about £150m - is purely a financial one, since it does not seek management or operational control of the assets in which it invests.
Part of its funds are allocated to assets like these because of the security of the long-term income that they offer.
Both ADIA and GIP declined to comment about the deal this evening.
