Along with Ferrovial and others, the Universities Superannuation Scheme has sold most of its shares in the holding company of Heathrow airport to a French private equity firm and the Saudi sovereign wealth fund, for a combined £3.26bn.

USS said on Friday it has completed the sale of a 7.90% stake in FGP Topco, the parent company of Heathrow Airport Holdings, to Ardian and the Public Investment Fund of Saudi Arabia for £684m, retaining a 2.10% shareholding. Canadian pension fund Caisse de dépôt et placement du Québec is also among those who have sold most of their stakes. Spanish infrastructure and construction giant Ferrovial sold its 19.75% stake for €2bn (£1.7bn), now holding 5.25%, making up the bulk of the shares that changed hands.

The sale may be surprising at a time when the government is trying to encourage pension funds to invest in domestic infrastructure. The airport is facing challenges over the environmental impact of its plan to build a third runway, and the new government has not yet said where it stands on this. According to reports in the Financial Times, it is divided on whether to allow the expansion. 

Simon Pilcher, chief executive of USS Investment Management, said: “We continue to see private infrastructure as an attractive asset class that can deliver strong returns for the scheme, alongside other opportunities within private markets.” 

He noted that nearly a third of USS’ assets are invested in private markets globally, including “a number of assets” held in the UK.  

“The UK remains a key market for us, and we are actively exploring opportunities to redeploy the capital raised from this sale,” Pilcher added. 

The UK’s £74.8bn pension fund for academics has been burned by its experience with the shareholding in troubled water firm Thames Water, which is teetering on the brink of nationalisation. In July, Pilcher warned the experience would guide USS’ future approach to regulated assets “and more broadly”. 

Chancellor Rachel Reeves called the Heathrow investment “a strong vote of confidence in the UK” that would support growth, while business and trade secretary Jonathan Reynolds added that the government will seek to secure more investments like this. 

With the acquisition of other shareholders’ stakes, investment firm Ardian becomes the largest shareholder in Heathrow Airport, controlling 22.6%. PIF has bought 15% of shares. 

Mathias Burghardt, head of Infrastructure at Ardian, said: “We are passionate about infrastructure and the role it plays enabling growth and supporting the transition to net zero. We intend to support the Heathrow management team as they work to achieve both goals, growing the airport sustainably over the years ahead.” 

The UK is a priority market for Ardian, said Juan Angoitia Grijalba, co-head of Infrastructure Europe at the firm, and pointed to its track record of investing in airports, including London Luton and six airports in Italy. 

Turqi Al-Nowaiser, deputy governor and head of international investments at PIF, said: “Heathrow acts as a crucial gateway to the world, and we look forward to supporting Heathrow’s management in its efforts to secure the sustainable growth of the airport and to continue to maintain its position as a global aviation hub.” 

The chair of Heathrow Airport Holdings, Lord Deighton, said: "We’re delighted to welcome Ardian and PIF as new shareholders and investors in Heathrow’s future. We have a board of experienced infrastructure investors committed to our long-term development and growth, supporting our strategic journey to make Heathrow an extraordinary airport, fit for the future.”