Isle Of Man Government Long Term Investment To Secure London Air-link..

[manxchatterbox]

IOM Governemnet could be included in the bidding list for the sale of Dermot Desmond's London City Airport for a potential E733 million is hotting up with a shortlist now narrowed down to three or four bidders including some of the biggest names in European construction and development.

 

Dermot Desmond, one of Ireland's richest individuals with a personal fortune of well over E1 billion, could make E620 million when London City Airport, which he bought in 1995 for E34 million, is sold.

 

Spanish construction giant, Sacyr Vallehermoso, has confirmed that it is among the short-listed bidders and another Spanish firm, Abertis as well as German construction multi-national, Hoctief, have also been said to be on the list of prospective buyers.

 

A formal bidding auction will take place in the next few weeks after a full memorandum of sale is drawn up and sent to bidders.

 

The last valuation of the airport was conducted for an internal restructuring last December. At that stage, the airport operations alone were valued at E510 million.

 

The land on which the airport sit at the London Docklands site was valued last September by a firm of London valuers at £131 million.

 

Some sources, however, suggested that the airport could fetch as much as E650 million in a competitive bid situation as the price of airports have soared in value around the world as investors hungry for infrastructure assets have piled into auctions.

 

And are plenty of people interested in buying the Mr Desmond's airport, located on 120 acres of prime real estate off Royal Albert Dock in East London.

 

Australian bank Macquarie, infrastructure group Babcock & Brown, which has just taken over Eircom have also been mentioned as possible bidders.

 

Hochtief is also believed to be circling London City Airport with a view to expanding its aviation capacity as well as turning some of the property in to cash to write down debt.

 

IOM Government could be one of the bidders looking to secure a London air-link to the offshore Island.

 

http://www.businessworld.ie/livenews.htm?a...rollingnews.htm

[Amadeus]

IOM Governemnet could be included in the bidding list........

 

......IOM Government could be one of the bidders looking to secure a London air-link to the offshore Island.

 

http://www.businessworld.ie/livenews.htm?a...rollingnews.htm

Didn't see those bits in the original article....

[haX0red_Account]

subliminal disclosure of privileged information or just idle stream of consciousness?...it would actually make an economically sound commercial and strategic venture for the IoM imo but then that would almost certainly rule out the government's interest in it.

[Frances]

some years ago I was told that the life of London City airport was limited as once the proposed (& agreed) new Thames crossing was built there would be insufficient clearance for flightpaths - have things changed in the last couple of years ? Must admit it was always my favourite air link to the Island except the times the Jubilee line packed up (road acess is horrendous)

[LoneWolf]

some years ago I was told that the life of London City airport was limited as once the proposed (& agreed) new Thames crossing was built there would be insufficient clearance for flightpaths - have things changed in the last couple of years ? Must admit it was always my favourite air link to the Island except the times the Jubilee line packed up (road acess is horrendous)

 

I would imagine the airport has a reasonably long life ahead of it. There has been a massive investment in terms of overland rail links and it is now fairly easy to reach the London underground system.

Road access is still poor but there are plans afoot to improve matters.

The main driver has obviously been the development of dockland areas such as Canary Wharf.

The approach is really spectacular and has to be worth the price of a ticket. Flying past the HSBC building is something else!

[manxchatterbox]

It looks like it might not yet be too late for the bid from IOM plc to be submitted (and before MacQuarie):-

 

 

London City Airport coup now in doubt

Monday, October 02 06:39:09

 

Irish billionaire, Dermot Desmond, faces bitter disappointment after the leading bidder for his London City Airport pulled out of the deal.

 

It is understood that Spanish consortium Sacyr Vallehermoso, the chief contender for the airport, which Mr Desmond bought for just E34m in 1995, withdrew from the auction after Mr Desmond refused to grant it exclusive negotiation rights over the other three contenders.

Sacyr Vallehermoso is reported to have offered an initial bid of over E900m for the property.

 

 

Another Spanish firm, Abertis as well as German construction multi-national, Hoctief, have also been said to be on the list of prospective buyers.

 

The last valuation of the airport was conducted for an internal restructuring last December. At that stage, the airport operations alone were valued at E510 million.

 

The land on which the airport sit at the London Docklands site was valued last September by a firm of London valuers at £131 million.

 

Some sources, however, suggested that the airport could fetch as much as E650 million in a competitive bid situation as the price of airports have soared in value around the world as investors hungry for infrastructure assets have piled into auctions.

 

And are plenty of people interested in buying the Mr Desmond's airport, located on 120 acres of prime real estate off Royal Albert Dock in East London.

[manxchatterbox]

IOM Govt too slow as usual and now its too late...

 

Desmond's airport sold to AIG consortium

Wednesday, October 11 12:50:16

 

Dermot Desmond's London City Airport has been bought by a consortium led by US insurance giant American International Group for an undisclosed fee.

 

Newspaper reports this morning hinted that the deal could be valued at £750m.

Irish billionaire, Dermot Desmond, who bought the airport in 1995 for E34m stands to make as much as E620m from the deal.

 

The consortium also involves Credit Suisse Group and GE Infrastructure joint venture Global Infrastructure Partners.

 

Irish billionaire, Dermot Desmond, who bought the airport in 1995 for E34m stands to make as much as E620m from the deal.

 

A release from London City Airport said that the deal 'reflects confidence in the airports development potential as exemplified in the Master Plan published earlier this year.'

 

It added that the consortium will work with the existing airport management to 'maximise and develop the future value of the airport.'

 

Adebayo Ogunlesi, chairman of Global Infrastructure Partners, said: 'We are pleased that London City Airport is our first investment as it is a very high quality asset which serves one of the world's most important aviation markets.'

 

Spanish construction giant, Sacyr Vallehermoso, another Spanish firm, Abertis as well as German construction multi-national, Hoctief, were also said to be on the list of prospective buyers.

 

The land on which the airport sit at the London Docklands site was valued last September by a firm of London valuers at £131 million.

 

The airport is located on 120 acres of prime real estate off Royal Albert Dock in East London.

[Karellen]

Thats a huge price paid for London City airport. Standby for hikes in landing fees and passenger handling charges - all passed on to the travelling public of course.

 

Edit for spelling

[manxman8180]

IOM Govt too slow as usual and now its too late...

Because, of course, the Isle of Man has got that sort of money to throw around?

 

Oh what it must be like in your world.

[x-in-man]

Shock new update.

 

A house could be for sale in the UK.

 

The Manx Government could probably put a bid in, and buy it as an investment property. A spokesman, it is said to have been said that "if they did, they would have to spend some money. If the property was for sale, which is unconfirmed, the price - if there was one - would have to be agreed"

 

A further spokesperson for the possible vendors has stated that is the house was for sale, a sign saying 'For Sale' would be errected outside.

 

Legal teams would like to look at the possibilty of buying the house, if it was for sale - subject to a survey to prove it infact, was a house. A spokesman for the legal team stated "Hello - Im part of the legal team"

 

Meanwhile in a further development, Gandpa Simpson stepped in and started one of his stories that never really ever got anywhere.

 

A BBC spokeswoman has said "We are reading the post and we must conclude that the type of posting that is going on is a real bench mark in posting. We would like to point out that MCB would never get a job writing news reports for the BBC - coz Im sure there could be laws about just pulling things out of the news and trying to add an Isle of Man spin on it."

 

Meanwhile in a related story, Sex change super star Micheal Jackson has been snapped wearing a floppy hat and high heels. MCB would like to know if the high heels are available in Douglas, if not why not. MCB has added that "if an MHK would like to look into the costs of high heels on the island then voters could relate them to the price of beans and make up their own price".

 

source - Fake link - that does not go anywhere - but I like typing

[Chinahand]

IOM Govt too slow as usual and now its too late...

Because, of course, the Isle of Man has got that sort of money to throw around?

 

Oh what it must be like in your world.

 

Too right, the entire government's external reserves are approximately £750 million. Eggs in baskets and all that.

 

This whole idea has been dreamt up in the turgid recessess of MCB's mind ... less said the better.

[Declan]

/doffs cap in appreciation of x-in-man's post.

[manxchatterbox]

Thats a huge price paid for London City airport. Standby for hikes in landing fees and passenger handling charges - all passed on to the travelling public of course.

 

Edit for spelling

 

exactly...well pointed out K.

[haX0red_Account]

IOM Govt too slow as usual and now its too late...

Because, of course, the Isle of Man has got that sort of money to throw around?

 

Oh what it must be like in your world.

 

Too right, the entire government's external reserves are approximately £750 million. Eggs in baskets and all that.

 

This whole idea has been dreamt up in the turgid recessess of MCB's mind ... less said the better.

that's actually nonsense and you're missing a nugget of wisdom from MCB; most investments of that nature are structured in consortia and/or are leveraged so you wouldn't be claering out the entire reserves to bet on one project but as a substantial investor, it would have a major say in a strategic investment. It would also be able to borrow cheaply as a result of its aaa-rating so it could reinvest the proceeds in the higher-returning infrastructure project.

[Gladys]

After a report that recommends a more streamlined IOM Govt and that non-governmental activities should be hived-off in some way, why does MCB now advocate the IOM Govt buying LCY?

 

Yeah, sure with levarage the IOM Govt could bid, but should it?