Land Securities announces that Land Securities Trillium Limited, its property outsourcing business, has agreed to dispose of its 50% share in Telereal to subsidiaries of its joint venture partners, Pears Trusts Group and William Pears Family Holdings Limited, (together "Pears Group"), for a consideration of £300m. At the same time LS Trillium will enter into agreements maintaining its relationship with Telereal on an ongoing basis.
Telereal was formed as a stand-alone business in 2001, when it purchased the BT property portfolio with LS Trillium and Pears making an initial equity investment of £146.0m each. Since its formation Telereal has provided strong returns for the Company. These returns have arisen from the disposal of surplus property vacated by BT, rental income, the disposal of an investment portfolio and debt refinancing.
With the cash received on completion of the sale, Land Securities will continue to invest in its core markets of retail, London offices and new property outsourcing contracts through LS Trillium, including potential investment in the multi-billion pound Ministry of Defence and government-funded Building Schools for the Future programmes.
Source: Land Securities