British Telecom has confirmed that it has agreed to sell its UK property portfolio in order to reduce the company’s mounting debts. The portfolio, which was originally expected to raise £2bn, has been sold for £2.3bn.
UK Property developer Land Securities Trillium and the privately-owned William Pears Group have bought the portfolio, which includes 6m m2 of offices and telephone exchanges. BT plans to lease back the telephone exchanges so that it can concentrate on its core business activity.
BT’s chairman, Christopher Bland, says of the sale “This represents a further step forward in BT’s drive for cash and the reduction of the headline debt.”
Land Securities purchase of the portfolio is to be funded mainly by an asset-backed bond.
