By Lucy Craymer
WELLINGTON, New Zealand--New Zealand infrastructure investment firm Infratil (IFT.NZ) has conditionally sold Manston Airport in Kent for one British Pound to Ann Gloag's Lothian Shelf (710) Ltd.
The companies said in a joint statement Tuesday that it had sold the airport for the token amount plus an adjustment for working capital variances and cash injected by Infratil between Oct. 14 and when the transaction is completed. The sale is expected to occur on or before Nov. 29.
"From Infratil's perspective, while Manston was a very small part of the company's overall asset base, this sale will result in a more focused portfolio and improve our future cash flow position," said Infratil chief executive Marko Bogoievski.
Infratil has been looking for a buyer for this airport, along with a second--Glasgow Prestwick Airport in Scotland--since March 2012, as the airports have failed to deliver the expected passenger growth and financial returns. Infratil has had to continually write down the value of its European airport assets. Earlier this month the company said the Scottish government was looking to buy Glasgow Preswick, with the hopes negotiations would be completed by November.
Infratil said following the sale of Manston Airport and the proposed sale of Glasgow Prestwick Airport the company expected to impair the assets by approximately GBP11 million in its half year financial results. This was the total value of the two assets as of May.
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