BT restructure: The property billionaires hit by telecom giant's move to reduce estate

A London-founded secretive property giant headed by three billionaire brothers was on Thursday weighing its options as BT took an axe to its estate.

The telecoms giant today unveiled plans to reduce its property footprint. Hundreds of office buildings are expected to come up for grabs, with the firm attempting to exit leases or sell those it owns.

Property sources believe Hampstead-based investor William Pears Group will be affected.

The firm is behind the property outsourcing business Telereal Trillium, which in 2001 entered a 30-year partnership with BT, agreeing a number of sale and leaseback deals.

BT’s decision could see it quit a number of those buildings. Though it would likely still have to pay rent as new occupiers are found, office agents think it could be tricky finding replacement tenants in some parts of the country.

William Pears Group could not be reached for comment. A spokesman for Telereal Trillium said BT’s London headquarters in St Paul’s (which the telecoms firm plans to leave) is not part of its portfolio.

He added: "The majority of Telereal Trillium’s BT estate is comprised of Telephone Exchanges and therefore any closures as part of BT’s rationalisation of its UK office estate will have minimal impact on the company. The William Pears Group (WPG) interest in Telereal Trillium is by means of a fixed coupon preference share, therefore WPG is highly unlikely to be affected regardless of any impact on Telereal Trillium.”

Pears, run by Mark, Trevor and David Pears, was founded in 1952 by their father, and their grandfather who ran three greengrocers in north London.