The British Airways Authority (BAA) has sold its 50% stake in the Airport Property Partnership (APP) to Segro for £244m ($340m) as part of its strategy to dispose of non-core assets.
Following the transaction, Segro will acquire APP's assets, which includes 17 properties covering 3.5 million square feet in the Heathrow airport area.
Under the deal, Segro has paid £111.3m ($169m) in cash for the APP and will also take on £128m ($195m) in debt and other liabilities from BAA.
Segro will become the asset manager of the APP, while Aviva will retain its role as fund manager.
The APP is a 50:50 joint venture between BAA Limited and Aviva Fund Management that owns 18 industrial warehouses around Heathrow, Stansted, Edinburgh and Gatwick airports.
The sale is now subject to ECMR clearance and is expected to be completed in mid-June.
Segro and Aviva investors are in discussions to expand the joint venture within Segro's existing portfolio in due course, but no details have been disclosed yet.
Segro is a provider of flexible business space in Europe.