Cheltenham and Gloucester councils are seeking to sell their airport asset amid local government “financial pressures”.
Cheltenham Borough Council and Gloucester City Council have jointly appointed real estate advisor Savills to market freehold interest in Gloucestershire Airport.
Room151 understands that the airport is currently being marketed with a guide price of £25m.
Both councils established the original site in 1930, originally named Staverton Airport. In 1993, the authorities set up a subsidiary company, Gloucestershire Airport Limited, to take over the day to day running of the airport.
A spokesperson from Cheltenham Borough Council told Room151: “With the financial pressures that councils across the UK are under, both Cheltenham Borough Council and Gloucester City Council have decided that the time is right to pass the mantle on to a new investor, to bring in the additional investment, expertise and resources.”
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The latest research by the County Councils Network (CCN) has revealed that local authorities face a cumulative funding gap of £54bn over the next five years, which could result in 16 councils issuing section 114 notices by 2026/27. The sale decision also comes at a time when lending options outside of the Public Works Loan Board are limited for authorities and borrowing costs are high.
Commenting on the sale, Jeremy Hilton, leader at Gloucester City Council, acknowledged that the “airport needs a capital injection to deliver on its strategy and business plan”.
Room151 understands that the capital receipt generated from the sale of Gloucestershire Airport will be used to deliver Cheltenham’s corporate priorities, including the Golden Valley Development.
Rowena Hay, leader at Cheltenham Borough Council, said: “Along with Gloucester City Council, we’ve worked hard to enhance the airport, making it the UK’s busiest ‘General Aviation’ airport in 2023. Now, it’s time for a new owner to drive the airport forward, ensuring growth for the business and the wider economy.”
Between 2021 and 2022, the airport received £10m of capital investment funded by the Gloucestershire Local Enterprise Partnership, Gloucester City and Cheltenham Borough Councils, which was used to develop runways and associated infrastructure.
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