British Telecommunications PLC
10 April 2001
NR0113 April 10, 2001
BT SELECTS LAND SECURITIES TRILLIUM AS PREFERRED BIDDER FOR PROPERTY PORTFOLIO
BT today announced that it has selected a fifty-fifty joint venture between
Land Securities Trillium and William Pears Group ('Trillium') as its preferred
bidder with the aim of finalising the proposed divestment and ongoing
management of its property portfolio. The transaction is expected to complete
during the summer.
BT's property estate totals six million square metres (64 million square feet)
and its divestment would represent a key step in enabling the company to focus
on its core business. The preferred bid would allow BT the flexibility to
vacate approximately one million square metres (ten million square feet) of
property within the first ten years at no additional cost.
Geoffrey Almeida, chief executive of BT Business Services, said: 'I am
delighted to be able to work with Trillium towards finalising our alliance.
This transaction will be the largest UK property deal to date and has great
potential to deliver comprehensive benefits to BT. The proposed alliance with
Trillium would also represent an exciting opportunity for BT people in our
Property division as they would be able to develop and build their expertise
with a leading real estate company. This was a very close competition as we
had excellent bids from both Trillium and Mapeley.'
Manish Chande, chief executive of Trillium, said: 'We are delighted BT has
chosen us as its preferred bidder for this unique property transaction and we
look forward to working with BT to bring the contract to its conclusion.'
'Our alliance with BT opens up an exciting new phase in the development of
Trillium and enables us to build on our expertise in managing large and
complex operational estates as well as fulfilling the needs of today's
corporate occupier. We recognise that the skills and experience the people in
the BT Property team would bring would be extremely valuable to Trillium as we
look to build our relationship with BT.'
The disposal remains subject to the conclusion of commercial negotiations
between BT and Trillium.
ENDS
ENQUIRIES:
BT Newsroom 020 7356 5369
Brunswick 020 7404 5959
Locksley Ryan
Land Securities Trillium
Stephanie Highett/Financial Dynamics:
020 7831 3113
NOTES FOR EDITORS
BT Business Services is responsible for BT's property estate which comprises
7,500 properties, with a total floor space of six million square metres.
Seventy per cent of these are operational buildings for which BT will retain
the freehold and exclusive control.
The divestment of the property estate will enable a more flexible approach to
BT's office arrangements and building requirements. The transaction is
expected to make a contribution to reducing BT's headline debt with cash
receipt expected during 2001.
Land Securities Trillium is bidding with the William Pears Group through a 50/
50 joint venture company called Telereal Ltd.
Trillium was established in 1997 and acquired by Land Securities PLC in
November 2000. It combines capital, estate and facilities management expertise
in a total outsourcing package. In 1998, Trillium won the PRIME contract to
own and manage the majority of the Department of Social Security's property
portfolio. In March 2001, Trillium was selected by the BBC as the preferred
bidder for its property portfolio. Trillium is also one of two shortlisted
bidders for the London Underground Property Partnership.
Land Securities is one of Britain's leading real estate providers with assets
of £7.7 billion. The company's portfolio includes a balanced mix of offices,
shops, shopping centres, retail warehouses, leisure and industrial properties.
The William Pears Group is one of the largest private companies in the UK. It
holds substantial property interests and is involved in a large number of
joint ventures.
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