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.
Sales of the tablet are set to fall again, say analysts
Met Police confirm there was a 'minor disturbance' and that no-one was arrested
George Lucas criticises the major Hollywood film studios
Does Chris Grayling realise what a vague concept he is dealing with?
Trend which requires crisps, a fork and a strong stomach is sweeping Mexico's streets
Parties threaten resort's image as a family destination
I Am Bread could actually be a challenging and nuanced title
- 1 Indian footballer Peter Biaksangzuala dies after injuring spine doing somersault celebration
- 2 Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
- 3 Banksy arrest hoax: Internet duped by fake report claiming that the street artist's identity has been revealed
- 4 Drink alcohol and eat meat to improve male fertility - but cut down on coffee, studies suggest
- 5 Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
Banksy arrest hoax: Internet duped by fake report claiming that the street artist's identity has been revealed
'Russian submarine spotted' by Swedish military off coast of Stockholm
Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Sorry Judy Finnigan – Ched Evans is no less sickening than an alleyway rapist
Residents should throw a street party and mix with immigrant neighbours, councils told
Workers 'could be forced to pay £5 a week' to get benefits
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver allegedly kicks gay couple off for kissing
iJobs Money & Business
£18 - 23k + Benefits: Guru Careers: We are seeking a Customer Service Executiv...
£60 - 65k + Benefits: Guru Careers: We are seeking a ASP.NET Web Developer / ....
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£27000 - £32000 Per Annum: Clearwater People Solutions Ltd: Our large charity ...