Acquisition Resources

Land Securities is reportedly conducting a review of its business structure, which could lead to a spin-off of its Trillium outsourcing business. 

The review, which was said to be "well progressed", was announced in a statement by Chief Executive Francis Salway, who said "It became evident to us in the run-up to and following REIT conversion that we should test our current business structure against alternative options to ensure that we have the optimal structure for creating long term shareholder value." 

However, the possibility of the divestment has led to debate amongst analysts, some of whom believe that Trillium could command higher prices later when property capital value growth grinds to a halt. 

There are also concerns that the company's investment portfolio would become mre vulnerable to market volatility, although those said to approve of the possible break-up claim that specialist REITs have stronger growth prospects, and the current share price does not value Trillium.