Macquarie, the Australian investment bank, is back in the race for Trillium, the outsourcing and infrastructure arm of FTSE 100 property giant Land Securities.
Land Securities snubbed Macquarie when it trimmed the number of bidders down to three last month, but the bank has now teamed up with Telereal, one of the successful teams.
It is understood that if the consortium's bid is successful, Telereal, which is owned by London-based William Pears Group, would take Trillium's property assets and Macquarie those related to Private Finance Initiative-type investments.
An industry source said Telereal had given Macquarie access to "the data room", which Land Securities and adviser UBS set up so bidders could conduct a better assessment of Trillium – a complex business whose clients include the Department for Work and Pensions and Norwich Union.
The latest round of bids is due later this month. First-round bids, which also came from Goldman Sachs' Whitehall Fund and private equity fund Charterhouse Capital Partners, are reported to have disappointed Land Securities, which is looking for up to £1.5bn. However, sources close to the auction said a sale remained the most likely option.
Land Securities is also pursuing a demerger of Trillium as part of a three-way break-up that would also see the group's London office and retail real estate investment trusts spun off.
Land Securities, Telereal and Macquarie declined to comment.
w Barclays Private Equity is set to buy I2 in a deal valuing the infrastructure fund at around £900m, after rival bidders pulled out. Barclays Private Equity is already a shareholder and will buy out 3i and Société Générale.