BAA and Aviva Investors’ deal to sell more than £700m of airport property to ProLogis has collapsed after more than a year of negotiations.

Talks between the parties officially ended about three weeks ago, it emerged today, following months of speculation that the deal was off.

ProLogis was in exclusive negotiations with baa and Aviva to buy the Airport Property Partnership, which is 50:50 owned by the pair. The deal would have included BAA Lynton staff as well as assets like the Cargo Centre at Heathrow.

ProLogis set up a partnership with West London specialist Brixton to bid for the portfolio, but when this fell apart, continued with talks alone. Other bidders included AMB.

The Airport Property Partnership was valued at more than £1.2bn when it was originally marketed in 2007.

Property entrepreneur and hotelier Surinder Arora completed a deal to buy £309m of property from the portfolio in August.

ProLogis’ shares fell by more than a third in morning trading today in New York following the group’s announcement that chief executive Jeff Schwartz was resigning and it was putting development on hold.

The shares have lost more than 90% of their value over the last 12 months.