UK. BAA announced today that contracts were exchanged on 31 March 2003 for the sale of the substantial part of its remaining interests in the McArthurGlen designer outlet centres to the Mayfair Limited Partnership.
BAA said the transaction substantially concludes its strategy of exiting from non-core airports business. Last year BAA and McArthurGlen agreed to dissolve the BAA-McArthurGlen joint venture, effective from 30 August. As part of this strategy, BAA ceased to be involved in any development of new McArthurGlen group factory outlet centres in the UK and Europe from that time.
The sale to Mayfair Limited Partnership is in respect of all BAA’s stakes comprising, 100% at the York centre, 75% at Mansfield, 50% at Livingston and 25% at Ashford. The transaction will yield proceeds of £165 million (US$261 million), which BAA said is in line with expectations.
Assets retained by BAA for the time being include an 11.2% minority stake in the centre at Swindon, and two sites held for development adjacent to this centre. The Mayfair Limited Partnership comprises clients of Morley Fund Management in joint venture with McArthurGlen Europe.
