Land Securities Trillium has won the right to buy Royal Mail’s surplus property portfolio of more than 300 sites.

It fought off tough competition in the final round of bidding from Telereal, the outsourcing firm owned by investment group William Pears.

Telereal was considered to be a prime bidder for the sites having acquired 59m sq ft (5.5m sq m) of the BT UK property estate in 2001. With many Royal Mail sites located next to or near BT sites.

It is understood that the transaction value is around £110m.

The Royal Mail portfolio comprises 2.9m sq ft (269,416 sq m) of space, of which 2m sq ft (185,804 sq m) is let. The deal is based around the disposal of surplus liabilities and part-surplus assets.

The portfolio covers England, Wales and Scotland and is the first major corporate portfolio deal for Royal Mail, representing 3% of the organisation’s 2,700 properties

Of the 304 properties, 127 properties, mainly leaseholds, are surplus to Royal Mail’s requirements and sublet to other tenants. These include 64 sorting offices, 41 office sites, 11 retail sites and two car parks.

The remaining 177 are freeholds or long leaseholds where Royal Mail is proposing a 15-year lease with a break at 10 years, thought to hinge on uncertainty about needing the space by that time.

The portfolio is characterised by old post office buildings in town centres and distribution depots on the outskirts.