Trillium, the outsourcing arm of Land Securities, will be sold to property investment company Telereal for £750 million.
Land Securities will keep its Accor portfolio of hotels and its chief executive Ian Ellis will become chairman of a new joint management team.
The sale is at a discount of 25 per cent as the arm was previously reported to be worth £1 billion.
“We are pleased to have concluded this sale in a challenging economic environment,” said group chief executive Francis Salway. “we will now focus on our core property investment and development activities”.
Telereal will initially pay £444 million in cash, which will be used by Land Securities to pay off its debt and balance its books, it has been reported.
The chief executive officer of Telereal, Graham Edwards said the pair were “two of the leading players in the real estate sector whose businesses are highly complementary”.
United, the two companies will have revenues of £1 billion and a commercial property portfolio of 100 million square feet.