Feeds

BT completes £2.3bn property sale

Debt edging downwards

  • alert
  • submit to reddit

Intelligent flash storage arrays

BT has secured the £2.3 billion sale of its property portfolio in a move that could see its debt mountain fall to just £13 billion.

The deal with Telereal Holdings Limited - a 50:50 joint venture owned by Land Securities Trillium and The William Pears Group - is subject to Telereal raising the cash on the bond markets.

BT's property estate consists of six million square metres of floorspace in offices, depots and telephone exchanges. The telco will lease back the property it needs.

Sir Christopher Bland, Chairman of BT, said: "This represents a further step forward in BT's drive for cash and the reduction of its headline debt, while at the same time outsourcing a non-core competency."

Today's announcement means that that BT's debt - on paper at least - has fallen to around £13 billion.

It raised £2.14 billion with the sale of its Yellow Pages business. Its interests in Japan and Spain raised £4.4 billion; Malaysia contributed a further £0.35 billion. If the rights issue succeeds that will generate £5.9 billion and today's announcement will chalk-up £2.3 billion - a total of £15.09 billion wiped off its £27.9 billion debt mountain.

Of course, not all the cash has been banked yet and there's still a long way to go - but hey, it's a start. At least it should keep the bailiffs away for another week or so. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
The total economic impact of Druva inSync
Examining the ROI enterprises may realize by implementing inSync, as they look to improve backup and recovery of endpoint data in a cost-effective manner.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.