BAA today announces that it has agreed to sell its 100% interest in Gatwick Airport Limited to an entity controlled by Global Infrastructure Partners for £1.51 billion.

Of the sale price, £55 million is conditional on future traffic performance and the buyer's future capital structure.

Proceeds will be used to primarily repay part of BAA's existing debt.

BAA announced its plans to sell Gatwick in September 2008, before the end of the Competition Commission's UK airports market investigation.

Colin Matthews, BAA's Chief Executive, said: "Gatwick and its people have long been a central part of BAA and we are proud of the airport's development as one of the world's leading international airports.

"BAA is changing and today's announcement marks a new beginning for both Gatwick and BAA. We wish Gatwick well for the future and are confident that the airport will flourish under new ownership.

"BAA will focus on improving Heathrow and our other airports."

The sale is subject to, among other things, EU merger regulation clearance. Completion of the sale is scheduled for December.

Notes to editors:

• Gatwick opened in 1958 and is the busiest single runway airport in the world, handling 32.2 million passengers in the year to September 2009
• Gatwick Airport Limited employs around 2,500 people
• Gatwick's Regulated Asset Base (RAB) at the end of the most recent regulatory period (1 April 2008 to 31 March 2009) was £1.575 billion
• BAA's financial advisers on the deal were HSBC and RBS. Legal advisers were Freshfield Bruckhaus Deringer and Herbert Smith.