Allianz eyes Nice and London City airports

Allianz’s infrastructure arm is weighing bids for Nice and London City airports as Europe’s biggest insurer seeks new investments, according to sources.

Allianz Capital Partners and potential co-investors have sufficient money to acquire both airports, said the sources, who asked not to be identified because the talks are private. The German firm hasn’t made a final decision on which airports it will pursue, they said.

The French government is selling Nice-Côte d’Azur Airport, the third-busiest in France, according to its website, as it privatises assets to pay down debt. The airport could be valued at about €2 billion, the sources said.

Global Infrastructure Partners, which owns 75 per cent of London City, is launching the sale of the hub in September and it could fetch about £2 billion (€2.75 billion). Allianz will face stiff competition from other infrastructure investors seeking stable, long-term returns while interest rates remain low.

Allianz is teaming up with Borealis Infrastructure on the bid for London City, the Telegraph newspaper reported on Sunday, without citing its sources.

Representatives for Allianz Capital Partners, GIP and Agence des Participations de l’Etat, France’s state holding agency that is overseeing the Nice sale, declined to comment. Borealis couldn’t be reached for comment. – (Bloomberg)