On Thursday 8 January 2009, Land Securities announced that it had reached agreement to sell Trillium to Telereal, the property investment and services company, for a total headline consideration of £750 million.
The sale does not include the Accor hotel portfolio which will remain within Land Securities. The sale completed on 12 January 2009.
Cash proceeds of £444 million will be received upon completion and used to reduce Group net debt in line with the priorities outlined by Land Securities at its half-yearly results in November which included the selected sale of assets to maintain the strength of its balance sheet.
Commenting on the sale, Francis Salway - Chief Executive of Land Securities said:
“We are pleased to have concluded this sale in a challenging economic environment. We will now focus on our core property investment and development activities. The cash proceeds will strengthen our balance sheet in the current market and subsequently put us in a stronger position as the cycle turns.
“We continue to run the Group with a cautious outlook and a focus on balance sheet management. In London and Retail we have best in class property investment businesses with a track record of adding value at the appropriate times in the cycle.”
Ian Ellis, Chief Executive of Trillium, stepped down from the Land Securities' Board on the day of the completion.
A conference call was held at 08:00 GMT on 8 January 2009, please see below for a full transcript of the call.