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BAA sells Edinburgh in £807m deal

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Edinburgh Airport. Photo: PA

Edinburgh Airport. Photo: PA

Edinburgh Airport. Photo: PA

LONDON Heathrow airport owner BAA will sell its Edinburgh terminal to US buyout firm Global Infrastructure Partners for £807m (€990m) after competition watchdogs ordered a break-up.

Scotland's busiest airport will be added to GIP holdings that already include London's Gatwick hub, which the New York-based firm bought from BAA in 2009, and London's City airport, which once belonged to financier Dermot Desmond.

"Edinburgh airport is a high-quality infrastructure asset," Adebayo Ogunlesi, GIP's chairman and managing partner, said in a statement, describing the acquisition as a "landmark deal".

Edinburgh's passenger total jumped 9.2pc to a record 9.4m last year and is forecast to reach 12.3m by the end of the decade. BAA, a unit of Spanish builder Ferrovial, is selling to comply with a UK competition ruling, and may also be forced to shed its London Stansted base. Both Edinburgh and Stansted are popular with Irish travellers.

"It's quite a good price for a quality asset," said Robert Crimes, an analyst at Credit Suisse in London, who wrote in a note on October 19 that Edinburgh had an enterprise value in the region of £600m.

Irish Independent