Macquarie Asset Management has agreed to acquire an additional 50% stake in London City Airport, bringing its total ownership to 75%, the investment firm announced on 15 October.

The acquisition, made through Macquarie European Infrastructure Fund 7 on behalf of institutional investors including pension funds and insurance companies, sees the firm purchasing the stake from Alberta Investment Management Corporation and OMERS. The deal reached financial close at the time of signing, though transaction terms were not disclosed. 

This follows Macquarie's June announcement of a 25% stake acquisition from Ontario Teachers' Pension Plan. Wren House Infrastructure will remain as a shareholder in the airport.

The investment comes as London City Airport prepares for significant expansion. The UK Government recently approved plans to increase annual passenger capacity from 6.5 million to 9 million. The airport, which handles more than 50,000 flights yearly serving over 30 destinations across the UK and Europe, has applied to the Civil Aviation Authority for approval to operate a broader range of aircraft.

Sara Sulaiman, managing director at Macquarie Asset Management in EMEA, said: "Our additional investment in London City Airport underscores our commitment to the UK's aviation sector. Britain's airports are a key driver of economic growth and demand for air travel continues to increase year-on-year."

Alison FitzGerald, chief executive officer at London City Airport, said: "This further investment from Macquarie Asset Management is a strong endorsement of our strategy to introduce new larger, quieter and cleaner aircraft, deliver more route choices for our customers, benefit our airline partners, and contribute even more to the UK economy."