REVENUE STRATEGY - LAND SECURITIES GROUP

1. Land Securities Group Plc, the U.K.'s largest real estate investment trust, plans to split itself in three after a slide in the shares that has cut the company's market value by 3.6 billion pounds ($7.4 billion) this year.
2. Land Securities will separate Trillium, a property-management outsourcing company, from its London and retail property investment units over the long term.
3. It will form a venture with J. Sainsbury Plc, the U.K.'s third-largest supermarket chain called Harvest LP. Land Securities will contribute one supermarket in Hull operated by the grocery chain, while Sainsbury will contribute outlets in Thanet and Wandsworth.

[Land Securities is responding to
a) a drop in commercial property values,
b) higher borrowing costs
c) stricter controls on credit that have caused U.K. real estate stocks to decline 36 percent this year and
d) perhaps the belief that “REITs will only survive if they are specialists”]

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