* Cash proceeds of 444 mln stg to reduce group debt
* Unit sold to property investment and services co Telereal
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LONDON, Jan 8 (Reuters) - Land Securities Group Plc is to sell its Trillium outsourcing arm for 750 million pounds ($1.1 billion), in a deal which streamlines its business and bolsters its balance sheet amid miseries in the UK property market.
Trillium, which had gross assets of almost 1.3 billion pounds at Sept. 30, has been sold to property investment and services company Telereal, bringing to an end months of speculation concerning its future ownership.
The sale, which does not include the Accor Hotels arm, is expected to complete on Jan. 12 and will generate around 444 million pounds of cash proceeds, which will be used to pay down Land Securities group debt.
"We are pleased to have concluded this sale in a challenging economic environment. We will now focus on our core property investment and development activities," said Land Securities Chief Executive Francis Salway.
"We continue to run the group with a cautious outlook and a focus on balance sheet management," Salway said.
Trillium (excluding Accor) generated an underlying operating profit for the year to March 31 2008 of 102 million pounds.
In November Land Securities axed year-old plans to demerge into three specialist entities focused on London, retail and property outsourcing amid volatile market conditions, but it reiterated it was still evaluating a trade sale of Trillium. (Reporting by Sinead Cruise; Editing by David Holmes) ($1=.6708 Pound)