BAA dissolves domestic joint venture

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BAA and McArthurGlen have agreed to dissolve the BAA-McArthurGlen joint venture with effect from August 30, 2002, as BAA completes its strategy of exiting from non-core interests

As part of this strategy, BAA has ceased to be involved in any development of new McArthurGlen group factory outlet centres in the UK and Europe, which leaves BAA with some remaining interests in outlet centres in the UK.

BAA will own the interests formerly held by the joint venture in the centres at York, Livingston and Mansfield, and will continue to own minority interests in the centres at Ashford and Swindon as well as some parcels of land at some existing UK centres. BAA's total interest in these centres is valued at approximately £200m ($312m).

BAA said its objective in completing the transaction is to dispose of its interests in the remaining centres and to leave the sector permanently in the short to medium term.