Abbey helps fund airport hotel deal - property development finance

28 August 2008

Abbey UK Corporate Banking was the joint lead bank for a multi-million pound commercial property deal, it has announced.

It helped to fund the acquisition of 31 developments located near various BAA airports in the UK by the Arora Family Trust (AFT).

AIB and the Bank of Ireland were also part of the transaction, which included offices, hotels and projects under construction.

The AFT, which is the largest family-owned hotel portfolio in the country, has spent £309 million of property development finance obtaining the sites, plus formal purchase contracts for future buildings.
Abbey spokeswoman Susan Geddes said: "Despite the turbulence in the finance and funding markets, solid transactions with strong management teams can still get the financial support they need."
Airport Property Partnership (APP), owned by BAA, were the vendors in the sale.

BAA is employing a strategy to dispose of some of its assets and the Arora deal is the first stage in the process of selling both APP and BAA Lynton, its property management company.