BAA raises funds in property sale

Ferrovial needs to pay off the debt it took on to buy BAA

Airports operator BAA, which is owned by Spain's Ferrovial, has agreed to sell 33 properties owned by a joint venture with Morley Fund Management.

The sale raised �265m, which will be split between BAA and Morley.

The sale is part of Ferrovial's programme of non-core sales to help pay off the debt it took on to buy BAA.

It comes as the group, which owns Heathrow and Gatwick airports, faces calls for a break-up amid growing criticism of its dominance.

Ferrovial is in the process of restructuring the debt it took on to make its �10bn acquisition of BAA in 2006.

The credit crisis has made refinancing debt more complicated, while bank loans have become more expensive.

Earlier this month, BAA sold its World Duty Free (WDF) shops to Italy's Autogrill for �546.6m.

Meanwhile, there are growing calls for the group to sell one or more of the seven UK airports it owns amid concern about mismanagement of resources and a lack of competition.

The Competition Commission has launched an inquiry into the matter.

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