Land Securities will this week announce radical plans for a three-way break-up. Sunday Times, Daily Telegraph
The group is expected to announce the proposals when it unveils its half-year financial results on Wednesday.
A wholesale break-up would see the company separated into Trillium, its outsourcing division; retail; and London offices. It is anticipated that such a complex separation will take up to a year to execute and will only be carried out once market conditions improve.
Francis Salway, the group chief executive, will take charge of the retail division; the other two divisions will be run by their existing heads – Mike Hussey for London offices and Ian Ellis for Trillium. Richard Akers, the existing head of the retail portfolio, is expected to stay with the division and take on a senior asset-management role.
It is understood the group has decided to press ahead with a break-up in response to the trend among investors for real estate investment trusts to specialise their activities.
It is expected that all three divisions will eventually be demerged as separate, tax-efficient real estate investment trusts on the London Stock Exchange.
Analysts believe the London office division would be capitalised at around £2.8bn and retail would be worth about £2.7bn. As a separate entity, Trillium could have a market capitalisation of £750m-£1 billion.