LONDON (Reuters) - Global Infrastructure Partners (GIP) explored a possible sale of Edinburgh Airport this year but decided that Brexit uncertainties would hit the price tag, sources close to the matter told Reuters.
The infrastructure fund’s sale of London City airport last year at a chunky valuation of more than 30 times core earnings had stoked speculation about more deals and the sources said that GIP asked banks to review its options.
The sources said the Edinburgh Airport valuation concerns arose because of uncertainty over Britain’s ability to strike a deal on access to Europe’s aviation market after the country leaves the bloc.
A spokesman for GIP declined to comment.
Edinburgh handled 12.4 million passengers last year and ranks as Britain’s sixth-busiest airport ahead of Glasgow.
One of the sources said that investment banks had proactively contacted GIP hoping to land a sellside mandate, but GIP was in no rush to sell and no deal was imminent.
But another source said he expects GIP to consult banks again in the next 12 months.
GIP bought Edinburgh Airport for 807 million pounds ($1.1 billion) more than five years ago from the now defunct BAA, which also used to own Heathrow, Gatwick and Stansted airports.
Last year GIP sold London City Airport to a consortium including Canada’s Borealis Infrastructure and Ontario Teachers’ Pension Plan for more than 2 billion pounds, having bought it for only 742 million pounds in 2006.
Additional reporting by Arno Schuetze; Editing by David Goodman