Irish businessman Dermot Desmond has sold London City Airport to a US financial consortium for an estimate of £750 million.
The consortium, including insurer American International Group Inc, agreed to buy the airport, which serves the Canary Wharf financial hub, the group announced, but did not disclose the price.
AIG Financial Products and a joint venture between GE Capital and Credit Suisse called Global Infrastructure Partners agreed to acquire 50 per cent each in the company that owns the airport .
Mr Desmond appointed Morgan Stanley earlier in the year to sell it.
Sources familiar with the deal told Reuters news agency last month bids were expected to top £700 million ($1.3 billion). In 1995, Mr Desmond bought the docklands airport in east London for £23.5 million.
City Airport has become one of the busiest transit points in Britain. It is expected to be a hub for the London 2012 Olympic Games.
The consortium said the airport was expected to handle 2.4 million passengers in 2006, up 20 per cent from a year ago.
The deal remains subject to European Union merger clearance and is expected to close in November, the consortium said in a joint statement. Spokesmen from both groups declined to comment on price.
European airports have been drawing investors attracted by stable, long-term income streams thanks to a boom in air travel and predictions that the number of passengers in the region will double to 2 billion by 2020.
Earlier this year Spain's Ferrovial snapped up Britain's BAA, which owns London 's Heathrow Airport , in a £10.1 billion bidding war.
Sources familiar with the situation told Reuters last month six groups of bidders were expected to submit second-round offers.
Other suitors who also bid as part of a number of consortiums included Britain's Balfour Beatty Plc, German airport owner Fraport, ABN AMRO's infrastructure fund, Spanish construction group Sacyr Vallehermoso and French insurer AXA, sources have told Reuters.
AIG Financial Products is AIG's structured finance and derivatives arm. Credit Suisse acted as financial adviser on the deal.