Land Securities is preparing to invest in property-based derivative instruments that could help hedge exposure to its largest developments, according to a report in the Financial Times. This is the first time the UK's largest property company is making a move outside buying and building physical real estate.

Land Securities has appointed two of the leading banks in the sector, Royal Bank of Scotland and JPMorgan, to act on its behalf in trading property derivatives. These can be used either to increase exposure to parts of the investment market or reduce some of the risk of owning its massive portfolio of properties should values fall again.