ARORA FAMILY TRUST COMPLETES

£309M AIRPORT COMMERCIAL PROPERTY TRANSACTION

The Arora Family Trust (AFT) today confirmed the completion of the acquisition of a portfolio of 30 assets from the Airport Property Partnership (APP), a 50:50 joint venture between BAA Limited (BAA) and clients of Morley Fund Management Limited (Morley).

The consideration paid for the collection of properties was £236 million and a further three properties which are currently being built are the subject of formal purchase contracts for £73 million and are expected to complete in the autumn. This makes the total consideration for the 33-property portfolio, £309 million.

Surinder Arora, whose family are the beneficiaries of The Arora Family Trust and who controls the largest family-owned and operated hotel portfolio in the UK, said: “This is a significant asset consolidation which will bolster the business plans we have for Heathrow, Gatwick and other UK airports.”

The portfolio comprises various commercial investments and development sites located at BAA UK airports. It has been acquired by the AFT as strategic long-term investments with development opportunities.

Mark Manners, Property Director of Arora Management Services Limited (AMSL) whose team acted for the AFT said: “We are very pleased that in the current climate and with the credit crunch almost daily in the news, we have been successful in assisting the directors of the AFT to raise finance to complete a property transaction of this size.”

The transaction has been concluded against a difficult economic climate for property transactions however, with the assistance of AMSL, the Trustees of the AFT have secured funding through Bank of Ireland Corporate Banking, Abbey National TreasuryServices plc and AIB Group (UK) PLC.

Surinder Arora is Chairman of Arora Hotels which has just opened the luxury Sofitel London Heathrow at Terminal 5.

Arora Group

The Arora Group is a successful UK-focused private group of companies, which leverages synergies across its specialist property, construction and hotel divisions to its strategic advantage. Since 1999, the Group has built its standing through meticulously managing projects from inception to delivery and beyond. Today, it owns and manages a diverse portfolio of flagship assets across the nation’s key business locations, partnering with some of the world’s most recognised brands to deliver consistently high service levels and sustainable growth.

For more information please visit www.thearoragroup.com

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