BT sells off the 'family silver'

BT has announced this morning that it has finally agreed the sale of much of its property empire in its latest attempt to reduce its mountain of debt.

Telereal Holdings, a joint venture between Land Securities Trillium and the William Pears Group, is to pay £2.3bn for BT's property, excluding 'key buildings'.

Among the buildings excluded from the deal are BT Centre, BT Tower and Mondial House. However, BT Centre is expected to onto the market independently in the next six to eight months.

In related news, David Varney, who oversaw the demerger of British Gas, is to become chairman designate of BT Wireless later this month to guide the mobile arm through its own demerger. Peter Erskine remains as CEO.

A BT spokesman said: "This will be a complete demerger. Shareholders will get one share in Future BT, or whatever its name is going to be, and one share in BT Wireless."

Varney said in a statement: "The stakes are high in the mobile market. Establishing the new BT wireless company and building on its business success are challenges that I relish."

A BT spokesman said the demerged BT Wireless will be much the same company that it is now.