The BMG joint venture was established in 1993 and has developed12 malls totalling nearly three million sf in the UK, France,Austria, Italy and Holland. But BAA was known to be uncomfortableand had been looking for buyers for its 50% stake in thebusiness.

Under the terms of the divorce settlement BAA's propertysubsidairy BAA Lynton will assume ownership of a 100% stake in thescheme at York; 50% of the scheme at Livingstone in Scotlandalongside 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 ($300million)--over the medium term. McArthurGlen will continue tooperate and manage the centres.

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