BAA Limited announces that The Airport Property Partnership (APP), a 50:50 joint venture between BAA Limited (BAA) and clients of Morley Fund Management Limited (Morley), has entered into an agreement to sell a portfolio of 33 assets to The Arora Family Trust for £265 million.
The transaction includes the forward sale of two properties currently under development which BAA and Morley will fund to completion. The portfolio accounts for approximately one quarter of APPs total portfolio by value. The sale of 31 properties is expected to close in the second quarter of this year.
The sale of the two developments will close later in the year once the developments are completed. Part of the proceeds from the transaction will be used to repay APPs existing debt and the balance after costs will be returned to BAA and Morley The transaction is part of BAA's strategy to dispose of non-core assets, and represents the first stage in the sale of APP and BAA Lynton, BAA's property management company.
BAA was advised on this transaction by Morgan Stanley & Co. Limited.