Land Securities to return £541m

BRITAIN'S biggest property company, Land Securities, has made good on its promise to return surplus cash to shareholders with details of a £541m share buy-back scheme.

Investors in Land Securities' biggest competitor, British Land, are preparing for a bitter battle with management over buybacks at tomorrow's annual meeting.

Land Securities has told shareholders they will be offered 102p for each of their shares. According to details unveiled by Land Securities, shareholders will get seven new ordinary shares and eight B shares for every eight shares they hold at the beginning of September.

Investors will then have the choice of cashing in the B shares almost straight away with the company, which says that the money will be despatched by 19 September, or hanging on to their B shares until 17 April next year when they can also trade them in.

Alternatively, shareholders can keep the shares and get a dividend of 70% of sixmonths' London Inter-Bank Offered Rate twice a year.

Chairman Peter Birch said: 'The proposed arrangement for returning capital offers a number of clear advantages. It ensures our shareholders are treated equally and have a choice when to receive their cash.'