BAA Lynton, the commercial property development arm of BAA plc (`BAA`) announces that, in two separate transactions…
BAA Lynton, the commercial property development arm of BAA plc (`BAA`) announces that, in two separate transactions , it has exchanged contracts on the sale of two of its recently developed hotels at Heathrow and Stansted Airports (totalling 864 bedrooms) for a combined value of £40.3 million. The sales represent the successful culmination of a two year development programme.
In the first deal, BAA Lynton has sold the head lease interest in the newly developed Radisson SAS hotel at Stansted Airport to the Airport Hotels Partnership (`AHP` / the `Partnership`) for £24 million. It is anticipated that this transaction will complete in the fourth quarter of 2004/05. AHP was established in March 2000 to provide a vehicle for new investors to acquire stakes in some of BAA`s high performing hotel assets. BAA has maintained a minority stake (10%) in the partnership and BAA Lynton is the fund`s manager.
In the second deal, BAA Lynton, has sold the recently opened Jurys Inn Hotel, Heathrow to the Blair Group for £16.3 million. The newly developed hotel represents the first and only on-airport mid-market hotel at the airport. It is anticipated that this transaction will complete in the third quarter of 2004/ 05.
Commenting, John O`Halloran, managing director of BAA Lynton, said:
`These two sales mark the successful culmination of our current hotel development programme. Both these hotels are strong additions to their respective airports and offer exceptional brands to both leisure and business travellers.
`Furthermore, the sale of the Radisson SAS into the Airport Hotels Partnership underpins the importance and benefits of the inter-relationship between the Partnership and BAA Lynton by providing the fund with a pipeline of prime airport hotel investments. It also gives BAA the opportunity, as a minority stakeholder, to continue to participate in the potential of the property.`
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