MoD explores £20bn estate deal

The Ministry of Defence has opened talks with around a dozen big name companies, including FTSE 100 groups Land Securities and Serco, about managing its £20bn of property and infrastructure.

The Government wants at least one private partner to look after its defence structure as the MoD undergoes massive reorganisation and staff cuts. The Defence Infrastructure Organisation held a meeting with interested firms on Friday to discuss potential parameters of the partnership in what is known as "soft market testing". US group CH2m Hill, construction company Carillion, and listed property group St Modwen were among attendees.

The bidding process for the contract is expected to get start within the next three months.