The investor is pulling back from the three-way partnership it entered into with Hammerson and Henderson Global Investors in March 1999.
The move comes exactly five years after the Birmingham Alliance opened the 1.2 million sq ft (10,600 sq m) Bullring in the centre of Birmingham.
It is not known who will take over Land Securities’ interest in the partnership, but a deal is understood to have been close to completion at the beginning of the week.
The landlord first marketed its stake in April, after announcing a restructuring of the company into three arms.
A source close to Land Securities said: “It’s held on to a lot of its assets for a long time. The best thing it can do is churn the capital. The Bullring is still considered one of the better shopping centres.”
In its annual report in March the company revealed a fall in pre-tax profits of£888 million from the previous 12 months.
When the report was published, Land Securities’ retail portfolio was worth£6.2 billion. It reduced it in the year to March with the sale of£834.4 million of its assets, including the Whitefriars centre in Canterbury for£253 million and East Kilbride shopping centre. It also made£130 million from the sale of eight of its retail warehouses.
Its existing portfolio includes the Princesshay centre in Exeter, which it has completed in the past year, and the White Rose centre in Leeds.
Land Securities was unavailable for comment.