BAA Limited announces that its stake in The Airport Property Partnership ("APP"), a 50:50 joint venture between BAA Limited ("BAA") and clients of Aviva Fund Management Limited ("Aviva"), is being sold to SEGRO plc ("SEGRO"), for £244m1.
The transaction is part of BAA's strategy to dispose of non-core assets, and follows APP's sale of 33 assets to the Arora Family Trust for £309m in 2008.
The joint venture owns 18 industrial warehouses in or near Heathrow, Stansted, Edinburgh and Gatwick airports.
The sale is subject to ECMR clearance and is expected to close by mid June.
BAA were advised by Morgan Stanley (financial) and Herbert Smith (legal).
1SEGRO will assume BAA's share of APP's debt and other liabilities of approximately £128m with the result that BAA's net proceeds from the transaction will be approximately £116m. Total consideration includes approximately £3.7m in asset management fees and partnership distributions from 1 January 2010 to completion
