Chinese fund Gingko Tree in talks with Macquarie over City Airport bid

 
Kasmira Jefford
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A fund controlled by the Chinese government is said to be eyeing a bid for London City Airport, which has been valued at around £2bn.

Gingko Tree Investment, the London-registered investment arm of China’s foreign exchange regulator, is reported to be in talks with Aust­ralian financial group Macquarie about making a joint offer for the airport. An agreement has not yet been reached, The Sunday Telegraph said.

It comes after it emerged that the sovereign wealth fund of Kuwait was preparing a bid for the airport as part of a consortium with Canada’s Ontario Teachers’ Pension Plan and investment firm Hermes.

City Airport, which is owned by Global Infra­structure Partners and Oak­tree Capital, has been growing rapidly thanks to its popularity with business travellers commuting to and from other European cities.

Passenger numbers have risen from 2.8m in 2010 to 4.1m this year.

However, its growth prospects depend largely on its £200m exp­ansion plans, which hit a wall earlier this year when London Mayor Boris Johnson blocked plans to extend the terminal due to concerns over noise.