Vancouver Sells 50 Percent of Shares in YVR Subsidiary

Citigroup subsidiary Citi Infrastructure Investors has agreed to purchase 50 percent of shares in the Vancouver Airport Authority's subsidiary YVR Airport Services (YVRAS).

The airport authority says the purchase gives it the resources to expand its unique airport development business.

YVRAS is a private company that runs Vancouver International Airport and has investment and management interests in 18 airports in Canada, Cyprus, South America and the Caribbean.

Its deal with Citi Infrastructure Investors, part of Citigroup's Citi Alternative Investments, includes an exclusivity agreement whereby neither party will pursue other airport deals without the approval of the other partner, The Globe and Mail reports.

Airport Authority CEO Larry Berg says there is a good market for private airport management.

"It's quite an interesting and vibrant market that, perhaps in Canada, we're not that familiar with, but on a global scale it's a large market.

"It's a natural extension of what we do here in Vancouver," he says.

Financial details of the deal were not disclosed.

By Elizabeth Clifford-Marsh