The BMG joint venture was established in 1993 and has developed 12 malls totalling nearly three million sf in the UK, France, Austria, Italy and Holland. But BAA was known to be uncomfortable and had been looking for buyers for its 50% stake in the business.

Under the terms of the divorce settlement BAA's property subsidairy BAA Lynton will assume ownership of a 100% stake in the scheme at York; 50% of the scheme at Livingstone in Scotland alongside land Securities and 75% of the scheme at Mansfield, Nottinghamshire alongside Richardson Developments. But it plans an "orderly disposal" of the assets--valued at £200 million ($300 million)--over the medium term. McArthurGlen will continue to operate and manage the centres.

Kaempfer said that in future McArthurGlen's principal partner in new developments is to be Midlands-based Richardson Developments. "For McArthurGlen, this represents the end of one very successful partnership and the beginning of another," he said. "We will continue to own interests in nine existing centres--four in the UK, two in France, one each in Holland, Austria and Italy--and have three additional sites which we expect to build over the next two years.