BAA Lynton, the commercial property development arm of BAA, has exchanged contracts to sell two of its recently developed hotels at Stansted and Heathrow airports for a combined value of £40.3m.
The company has exchanged contracts to sell the head lease interest in the newly developed 500-bedroom Radisson SAS hotel at Stansted airport to the Airport Hotels Partnership (AHP) for £24m.
AHP, in which BAA has a 10% stake, was set up in March 2000 to provide a vehicle for new investors to acquire stakes in some of BAA’s hotel assets.
BAA has also agreed to sell the recently opened 364-bedroom Jurys Inn hotel at Heathrow airport for £16.3m to the Blair Group.
John O’Halloran, managing director of BAA Lynton, said: “These two sales mark the successful culmination of our current hotel development programme.”
He added: “Furthermore, the sale of the Radisson SAS to the Airport Hotels Partnership underpins the importance and benefits of the inter-relationship between the Partnership and BAA Lynton.
“It provides 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.”
BAA Lynton was advised by CBRE Hotels.
References: EGi News 29/11/04
