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LONDON-Telereal Holdings – a joint venture between Land Securities and the privately-owned William Pears group has paid £2.3 billion ($3.2 billion) for the property assets of British Telecom.

Closing thetransaction, the largest of its type in the UK, is conditionalon Telereal raising the necessary finance through a bond issue.

Manish Chande, ChiefExecutive of Land Securities’ outsourcing division, Trillium, said: ‘This is a landmarktransaction which illustrates the increasing realisation among companies ofthe value that can be unlocked from their property assets.’

Telereal will supply propertymanagement services to BT, and the contract builds in flexibility for the occupier, including the ability to vacate up to ten millionsf of property within the first ten years.

Overall, BT’s property estate has a total floorspace of 64.5 million sf. 70% of the 7,500 propertiesare operational buildings for which BT will retain the freehold andexclusive control. Trillium has already agreed similar outsourcing contracts with the UK Government’s Department of Social Security and the BBC.

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