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Last Updated: Monday, 23 May, 2005, 07:10 GMT 08:10 UK
British Land launches Pillar bid
The Eastgate shopping centre in Basildon
British Land is the UK's largest property investment firm by assets
British Land has made a 811m takeover bid for rival property investment company Pillar Property.

British Land, which specialises in developing and managing office and retail premises, said the deal would increase its assets to more than 10bn.

The takeover has been recommended by the directors of Pillar Property, who own 4.5% of its shares between them.

Pillar owns more than 1bn in property assets and manages retail developments valued at more than 2.5bn.

'Attractive opportunity'

Raymond Mould, Pillar Property's chairman, said he believed British Land's offer was an attractive one for shareholders.

The acquisition of Pillar Property provides British Land with an attractive opportunity to accelerate our stated strategy
Stephen Hester, British Land chief executive

GE Pension Trust, one of Pillar Property's largest shareholders, has already sold its 21.5% stake to British Land.

"The board of Pillar believes that British Land will be a good steward for the preservation and developments of the existing funds," he said.

The deal will also boost the value of property based investment funds managed by British Land by more than 3bn.

"The acquisition of Pillar provides British Land with an attractive opportunity to accelerate our stated strategy," said its chief executive Stephen Hester.

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