By Lisa Burroughes, 10 April 2001 16:24
NEWS The deal, reported to be worth around £2bn, will see the fifty-fifty joint venture between Land Securities Trillium and William Pears Group taking the bulk of BT's 7,500 properties in the UK. However, BT will continue to hold the freehold and exclusive control of around 70 per cent of the buildings. A BT spokesman didn't deny the £2bn figure for the deal, but instead said it would be confirmed when the telco receives its cash receipt for the finalised deal this summer. "While the deal isn't a debt reducing exercise, the mooted £2bn will make a considerable contribution to reducing our headline debt," he commented. According to BT, the joint venture was chosen over 60 other developers as the preferred bidder on its ability to provide "shareholder value". This includes the value of the deal as well as certainty of delivery and its ability to continue servicing BTs existing customer base. As part of the deal, BT will continue to vacate one sixth of the property for ten years at no added cost. Despite the size of the deal, BT is confident that it will be finalised by the summer, enabling it to reduce its debt and "focus on its core business".
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