Article taken from: www.morningstar.co.uk
FTSE 100 telecoms firm BT has agreed to sell its London headquarters for around £210 million to a European property fund. The deal with Orion European Real Estate Fund allows the firm to lease back the building for 30 months while it finds a new HQ. BT is targeting bringing superfast broadband to 15 million UK households, which will add £500 million a year to costs. The firm has locked horns with regulator Ofcom about the return that BT can make from its investments.
The notion of shareholders taking pain to benefit the UK’s infrastructure would likely play well. A change to BT’s dividend would not be well received initially but has been well trailed. The shares hit 500p in 2015 but have been on the slide since. Year to date, the shares have lost 20% despite a strong rise in the FTSE 100 in that period.
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