BAA has agreed to sell Gatwick Airport to an entity controlled by Global Infrastructure Partners, which also owns London City Airport and the port of Great Yarmouth.
Of the sale price of £1.51bn (US$2.5bn), £55m is conditional on future traffic performance.
BAA said the proceeds would be used to primarily repay part of the company¡¯s debt.
The UK airport operator announced its plans to sell Gatwick last September, before the end of the UK Competition Commission¡¯s airports market investigation.
The commission concluded that BAA had a dominant position in the UK airports market that was damaging to competition and ordered it to sell Gatwick and Stansted airports, plus either Glasgow or Edinburgh airports.
CEO Colin Matthews said BAA would now focus on improving Heathrow and its other airports.
Completion of the sale is scheduled for December.
