As well as the UK’s largest and most recognisable airport, Heathrow Airport Holdings also owns Stansted, Southampton, Glasgow and Aberdeen airports. The deal will see CIC pay £450 million for its stake.
The deal represents CIC’s second major investment in UK infrastructure following its purchase of 8.68 percent of the firm behind Thames Water back in January 2012.
"It is fair to say that the UK has a more open relationship with China than many other major economies," said Stephen Joske, senior manager at Australia Super, a pension fund based in Beijing.
The Chinese investment company is not the first foreign firm to buy a stake in the Heathrow holding firm. In August, Qatar Holdings bought a 20% stake, and this deal is currently awaiting approval from European competition regulators.