BAA Lynton
BAA Lynton is our commercial property team that acquires, develops and invests in real estate on and around our airports. Its main role is managing the Airport Property Partnership (APP), a 50/50 joint venture with Morley Fund Management.
The APP was created in March 2005 by injecting approximately £800 million worth of commercial property assets into a joint venture. Creating this 50/50 partnership with Morley Fund Management, gave BAA Lynton the financial freedom to extend its property activities, without the need to approach BAA for additional funding.
Expansion
There were numerous highlights in the year including the completion of a new 8,000 square metre cargo warehouse for Servisair at Heathrow. Several properties were also acquired including the 20 hectare LIFE site at Colnbrook, near Heathrow, in a 50/50 venture with Slough Estates and 3.6 hectare development site acquired from National Air Traffic Services at City Place, Gatwick.
Also at Gatwick, planning consent was granted for a new Immigration Removals Centre, pre-let to the UK Government. At Stansted the development of an eight-unit 5,850 square metre cargo warehouse started in September and is due for completion in 2007.
There were other key transactions within the investment portfolio including new leases to Swissport and Esso. Alongside these were numerous lease renewals including agreements with British Airways and TNT for cargo warehouses at Gatwick and Stansted respectively.
Future plans
Looking forward, BAA Lynton’s aim is to continue to deliver a high level of performance through the APP. This will be achieved through a combination of acquisitions and disposals, active asset management and value-creation from our development programme.
