Property deal boost for BA at Heathrow
Tuesday 04 April 1995
Under a new agreement with British Airports Authority, BA has secured tenure on its key sites at Heathrow for 150 years, on much less restrictive leases.
The company said the new arrangements would enable it to value the properties on an open- market basis, and it has instructed Richard Ellis, the chartered surveyors, to carry out a revaluation of property assets. This will be taken into the accounts for the financial year just ended.
BA refused to give any more details, but analysts said they expected the revaluation to be substantial and to pave the way for a write-down of the stake in the US airline. Peter Bergius of Kleinwort Benson said: "It would potentially soften the blow of any write-down of USAir."
Other shareholders in the US airline have already written down their stakes, and Sir Colin Marshall, BA's chairman, has warned that such a move is on the cards.
The new agreement with BAA, the landlord, covers 224 acres at Heathrow, which had been let on a ground lease expiring in 60 years, with the next rent review five years away.
The deal gives BAA a five- yearly rent review linked to retail prices on 185 of these acres, over 150 years. Buildings on the site include the airline's Heathrow hangars and associated engineering workshops and its computer centre.
The other 39 acres has been let back to BA on a short-term lease at open- market rent. They will be handed back progressively to BAA over five years.
Diving in at the deep end is no excuse for shirking the style stakes
- 2 Why I'm on the brink of burning my Israeli passport
- 4 War is war: Why I stand with Israel
- 5 Blackest is the new black: Scientists have developed a material so dark that you can't see it...
Ian Thorpe gay: Olympic swimmer comes out in Parkinson interview
Stephen Fry ‘criticises Operation Yewtree in dinner party rant’ calling for tougher laws to deter false sex abuse allegations
Israel-Gaza conflict: ‘Sderot cinema’ image shows Israelis with popcorn and chairs 'cheering as missiles strike Palestinian targets'
Israel-Gaza conflict: Israeli air strike destroys home for the disabled killing two women residents
Israel-Gaza conflict: Israeli PM says conflict may 'continue for a long time' as hundreds of Palestinians flee their homes
Sustained immigration has not harmed Britons' employment, say government advisers
War is war: Why I stand with Israel
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
Emergency data law: David Cameron plots to bring back snoopers’ charter
NUT strike: David Cameron announces crackdown on strike action ahead of mass industrial action
iJobs Money & Business
£70000 per annum: Harrington Starr: Information Security Manager (ISO 27001, A...
£75000 - £85000 per annum + ex bens: Deerfoot IT Resources Limited: Biztalk Te...
£60000 per annum: Harrington Starr: Trade Desk Specialist (FIX, Linux, Windows...
£35000 per annum: Harrington Starr: Service Desk Analyst (Windows, Active Dire...