Land Securities warned yesterday of the potential effects of the economic slowdown on its business but declined to provide details about how its demerger was going.

In a trading update yesterday, Britain’s biggest property company would only say the demerger of its retail, London and outsourcing businesses was 'progressing'.

It said it was still evaluating proposals for the sale of its Trillium outsourcing division but refused to give further details.

The sale is looking increasingly unlikely, however, as bids so far have failed to meet the company’s price expectations in a difficult climate.

Land Securities has previously said it would proceed with a sale only if it was in shareholders’ interests and would otherwise demerge Trillium alongside other parts of its business when market conditions are favourable.

Financial Times, The Times, Daily Telegraph