In a brief announcement BT confirmed that it has short-listed Land Securities Trillium and Mapeley for the divestment of its UK property portfolio (see News story).

The news comes the day after BT announced it had signed off the Project Jaguar FM contract with the Carillion-led Monteray consortium (see News story)

BT's property estate is currently managed by BT Business Services, which is responsible for 7,500 properties, with a total floor space of 6m sq m. Seventy per cent of these are operational buildings for which BT will retain the freehold and exclusive control.

The beleagured telecommunications giant says the transfer will enable a more flexible approach to its office arrangements and building requirements. The transaction is also expected to make a contribution of around £2bn to reducing BT's debt, with income expected during this year.

Earlier this year, BT's property director Alan White told i-FM that the property transfer would include a service element: "The only sensible way to service the occupier is to bring the two together," he said. Details are still not available on how the two deals will fit together but since both Land Securities and Mapeley are in the ‘total accommodation’ business it is difficult to see how a facilities management agreement could exist outside the property transfer.

Richard Byatt