London Biggin Hill Airport has agreed a £15 million finance package with HSBC to fund the construction of an additional 140,000 sq ft office, hangar and business aircraft parking facility, and the development of a 50-bed four star hotel.
The new infrastructure projects will meet growing demand for visiting aircraft and access to the airport’s many world-class aerospace businesses. They will also contribute towards the ambitious employment targets of 2,300 new jobs by 2030 set by the airport and The London Borough of Bromley.
London Biggin Hill is established as a major centre for engineering and aerospace innovation and in recent months has welcomed the arrival of Bombardier Business Aircraft which has established a brand new state-of-the-art heavy maintenance facility.
Will Curtis, Managing Director at London Biggin Hill Airport said: “With the support of our corporate finance advisers at Smith & Williamson we went through a rigorous selection process to make sure we had the right partner in place to help fund the next stage in our development. HSBC understood our business model and were genuinely supportive of our plans, backed by a competitive and flexible finance package.
“Completing the deal with HSBC enables us to fulfil the next stage of our development strategy for further enhancing Biggin Hill’s reputation as the gateway to London and the City for business aviation. Building on the success of the HSBC deal, Biggin Hill is introducing extended operating hours in the coming weeks which will provide our customers with unrivalled flexibility and capacity.”
James Shepherd, Area Director in HSBC’s Corporate Banking team, commented: “London Biggin Hill Airport is an ambitious business with plans to build more hangar capacity and house internationally recognised engineering and maintenance companies. Our experience funding significant development projects like this one helped us put a competitive and flexible finance package in place that has enabled work to start at the airport straight away. We look forward to watching the project as it progresses and continuing our relationship with the airport team.”
Smith & Williamson, the airport’s longstanding financial advisory partner, introduced HSBC to the company and project-managed the transaction on their behalf.
Iain Lownes, partner at Smith & Williamson, commented: “London Biggin Hill has established itself as a thriving business. It is already home to around 65 companies with over 1,000 employees. This fundraising will enable the airport to consolidate its position as a centre of excellence for aviation-led economic growth.”
London Biggin Hill has pledged to use a number of local businesses and suppliers throughout the project, including Civils Ltd which has been appointed as the principle contractor for the hangar.
Just 12 miles from the centre of London, Biggin Hill is the only dedicated business airport in the Capital and is already home to 65 commercial and aviation activities, 55 business jets and more than 150 other private aircraft and helicopters.
By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. This briefing does not constitute advice nor a recommendation relating to the acquisition or disposal of investments. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing.
Notes to editors
Smith & Williamson is a leading financial and professional services firm providing a comprehensive range of investment management, tax, financial advisory and accountancy services to private clients and their business interests. The firm’s c1,800 people operate from a network of 11 offices: London, Belfast, Birmingham, Bristol, Dublin (City and Sandyford), Glasgow, Guildford, Jersey, Salisbury and Southampton. Smith & Williamson is part of The Tilney Smith & Williamson Group.