British Airways (BA) has sold its entire stake in the London Eye Company (LCE) to the Tussauds Group for £95m.

The deal will see Tussauds increase its hold in the London Eye to two-thirds, with the remaining shares being held by the attraction’s architects, David Marks and Julia Barfield.

Tussauds, which is owned by Arab Emirates-based Dubai International Capital (DCI), has been responsible for the management and operation of the site since its inception in 2000.

Peter Phillipson, chief executive of Tussauds Group, said: “It has been everyone’s objective to create a secure and long-term future for the London Eye and this deal will achieve this.

The group intends to invest around £50m in the London Eye and the surrounding area over the next five years, creating more than 100 new jobs.

Plans include an interactive Flying Over Great Britain experience which will introduce visitors to the UK’s cultural diversity and wide range of landmarks. Tussauds intends to work with tourism body VisitBritain on the development and marketing of the new attraction.

Martin George, BA’s commercial director, said the attraction would keep its current name, British Airways London Eye.

“We have supported The Eye for nearly a decade and will continue to do so with the extension of its franchise agreement,” he said.

“This deal will both pave the way to securing the future of The Eye as well as enabling us to continue to strengthen our balance sheet and focus on our core business.”

The news comes just two weeks after the High Court dismissed The LEC’s case against the South Bank Centre (SBC) after a dispute over rent.

LEC brought the case in an attempt to prevent a rise in rent on its site, which is owned by the SBC.

Up until December 2004, the LEC paid £65,000 a year in rent. According to reports, SBC wants to increase the amount to anywhere between £1m and £2.5m.