BT sells property to pay off debts

Debt-ridden British Telecommunications (quote: BT) announced plans Thursday to raise around £2bn by selling the bulk of its property assets.

In what is believed to be the largest property transaction of its type in the UK, the telco is expected to sell off most of its 7,500 properties: totalling around 6 million square feet.

BT's debts are expected to reach £30bn by the end of Q1, due in part to its investments in third-generation (3G) mobile phone licences.

While some of the properties will remain under BT's control after being sold, it is thought that many of its London buildings will be vacated as part of a programme of moving to less-expensive regional offices. However, the BT Tower, a landmark in the centre of London, will not be sold.

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