Britain's first big corporate deal of the year has completed, with Land Securities finally selling Trillium, its outsourcing arm, to Telereal, a subsidiary of the William Pears Group, for £750 million. Don't hold your breath for the next one this size, though it is striking that such a deal could be financed in these markets.

Land Secs has been forced to accept about £250 million less than it first hoped and is taking a thumping £340 million loss on the deal. The sale took close to a year as the potential buyers struggled to raise finance and the price continued to fall as commercial property values deflated.

The company originally planned to demerge into three — offices, retail property and Trillium, which manages buildings for corporate and government occupiers. This was designed to provide the greater focus that Land Secs said its investors wanted. But as the market turned, the company decided to sell Trillium and drop the demerger.

If Francis Salway, Lands Secs' long-serving chief executive, was prepared to accept such a low price for Trillium it may suggest he is even more worried about the outlook for commercial property than he is admitting.

But in the current environment it looks sensible to pay down debt and reduce its loan-to-value ratio, and to do so this way rather than by selling properties from its core portfolio.

It looks a good buy for Telereal, formed in 2001 as a joint venture between Trillium and the family-owned William Pears, which could emerge as one of tomorrow's big property players.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive