BAA plc and McArthurGlen have agreed to dissolve the BAA-McArthurGlen joint venture with effect from 30th August 2002, as BAA completes its strategy of exiting from non-core airport interests.
As part of this strategy, BAA has ceased to be involved in any development of new McArthurGlen group manufacturersÂ' outlet centres in the United Kingdom 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 (25%) and Swindon (11%) as well as a small number of undeveloped parcels of land at some of the existing UK centres. BAAÂ's total interest in these centres is valued at approximately Â£200m and it will take on an equivalent amount of debt from the joint venture.
BAAÂ's objective in completing the transaction is to dispose of its interests in the remaining centres and exit permanently from the sector in the short to medium term, subject, of course, to market conditions.
The BAA McArthurGlen joint venture has developed seven centres in the United Kingdom and five across Europe in France, Austria, Italy and the Netherlands, over the last 8 years.