Buyout firm eyes Trillium

Private equity firm Cinven has reportedly approached British property company Land Securities about buying its property outsourcing arm, Trillium.

European buyout firm Cinven has approached Land Securities, Britain’s biggest real estate company, about a takeover of its property outsourcing arm Trillium, according to the Sunday Telegraph.

The interest comes as Trillium’s owner ponders a demerger or outright sale. Land Securities announced in November it planned to demerge its £14 billion (€18 billion; $27 billion) property empire into three listed real estate investment trusts (REITs) specialising in retail, London office and property outsourcing.

Cinven, which has not commented on the weekend report in the Sunday Telegraph, is not the only group to have made an approach about Trillium. Australia’s Macquarie Group has also been cited as a potential bidder for the £1.5 billion company.

Trillium provides property management services for non-property firms with large real estate portfolios or requirements. It manages 50 million square feet of property.

Cinven has not diversified into pure direct property yet, though many of its portfolio companies contain large real estate portfolios. The firm recently bolted on Classic Hospitals for £145 million ($287 million; €193 million) to Spire Healthcare, formerly BUPA Hospitals, which Cinven bought for £1.44 billion last June.