Milbank’s new infra team leads on Macquarie’s UK airports deal

Milbank and Freshfields are advising on a major infrastructure transaction that will see investor Macquarie acquire significant stakes in three UK airports.

The deal with Ontario Teachers’ Pension Plan includes a 55% stake in Bristol Airport, 26.5% in Birmingham Airport and 25% in London City Airport.

The Canadian pension fund giant is exiting long-held positions in the three airports, having acquired its stake in Birmingham Airport in 2007, in Bristol Airport in 2008 and in London City Airport in 2016.

The London City Airport deal has already reached financial close, while the Bristol and Birmingham stakes are expected to close by the end of the year, following regulatory approvals. Financial details have not been disclosed.

Advising

Milbank is acting for Macquarie, led by infra M&A partners Tim Sheddick and Tom Pound, with support from finance partners Katie Hicks and Jonathan Toffolo. The mandate is one of the first for the deal team after their high-profile move from White & Case in the spring.

Freshfields is advising Ontario Teachers’, led by corporate partner Richard Johnson alongside partners Jenny McIvor (finance), Emily Szasz (tax) and Alastair Mordaunt (regulatory).

Bigger picture

The deal is the latest sign of investor appetite for UK infrastructure assets. Airports are proving particularly attractive, offering steady long-term returns amid a booming travel market.

Saudi Arabia’s Public Investment Fund and French private equity giant Ardian recently snapped up a 37% stake in Heathrow between them, while Blackstone took a stake in the owner of Aberdeen, Glasgow and Southampton airports earlier this year.