As it battles to bounce back from the worst property crash in decades.

LONDON, Feb 5 (Reuters) - Britain's biggest mall owner Liberty International (LII.L) is mulling a radical division of its portfolio into two separate listed companies as it battles to bounce back from the worst property crash in decades.

The owner of London's Covent Garden tourist hotspot is evaluating a split of its 6.1 billion pounds ($9.59 billion) portfolio into a shopping centre business and a London-focused business.

"Such a transaction requires a number of third party approvals which have been requested and some of which are currently outstanding," Liberty said in a statement.

"The board will only be in a position to decide whether to proceed or not once it has progressed these matters further," the company added.

Despite owning some of Britain's most recession proof property assets, Liberty's balance sheet is seen by some as the one of the weakest in the bluechip property sector, where a new era of austerity has replaced years of cheap and easy credit.

Liberty is the only UK Real Estate Investment Trust (REIT) to have sold assets, mothballed developments and conducted multiple share sales to raise new funds and preserve existing capital.

It raised 280.5 million pounds in a placing in September, following an earlier 592 million pounds equity raising in April. [ID:nLN531932] [ID:nLS831506]

Nomura property analyst Mike Prew described the strategy as "sensible" because it would eliminate "a capital and management distraction" for Liberty's executive team, who have long-since fought to balance the competing needs of large-scale malls and London offices.

"REIT specialisation takes over from scale as the industry mantra," he told Reuters.

Liberty's plan echoes a demerger proposal put forward, and subsequently abandoned by, the UK's largest REIT Land Securities (LAND.L) in 2008.

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I find your article flawed and lacked research Liberty Int. is certainly not the only REIT on the LSE to sell property. In fact thaey resisted selling prime real estate and instead opted for a rights issue. They have only sold property of real worth in JV's Liberty like other . .more REITS suffer more from cash drag earning no interest. They actually started seeking acquisitions to spend excess cash earning no yield and replacing with property earning 5 to 7%. If I were all I would selectively construct a portfolio of LSE REIT's and gear the protfolio . .less by Investor on February 07 2010, 00:15 Find this comment inappropriate? Report it

Liberty lost Basically Liberty screwed existing investors by raising a discounted offer (below the price of its shares) which screws existing share owners. (Their shares are automatically discounted by the action). They did not grant any rights to their . .more existing share owners. And therefore they could not be sold to recoup the discount, (like a nil paid letter). They did not offer on the SA stock market (JSE), making a mockery of dual listing, and again screwing over foriegn exchange restricted SA investors, as they could not deal off shore. They are not managing their business...they should be focussing on getting good leases on their properties, not paying expensive comissions to consultants who advise them screw around with their investors. I'm pissed off with these additional expenses as they do nothing but reduce my earnings. So please all investors, tell them to pee right off and ask for the resignation of the board. They have not acted in your interest, and are dancing to someone elses tune! . .less by Investor too on February 07 2010, 04:10 Find this comment inappropriate? Report it

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