In addition to three proposals put forward by Laxey, which would require share buy-backs and some management changes, shareholders will also vote on the reappointment of John Ritblat as British Land?s chairman and chief executive.

Laxey's three proposals, none of which have the support of any of the UK shareholder trade associations, are expected to win fewer than 10 per cent of votes at today' s AGM. However, the rise in its holding to 9 per cent makes it easier for Laxey to call extraordinary general meetings to try to force British Land to alter its strategy to improve returns for shareholders.

Shareholders in UK companies need just 10 per cent of votes in order to call an EGM. ''Laxey can make life hell for the company and its non-executives,'' said one shareholder.

British Land said it had discovered the holding under filings in so-called Section 212 notices, under which holders of stock must confirm the identity of the beneficial owner. The company is ''seeking clarification ...of certain matters raised in the notification''.

Separately, British Land' s largest competitor, Land Securities, yesterday unveiled plans to return £541m to shareholders, slightly more than it had promised two months ago. Analysts said the move raised pressure on British Land to undertake similar returns.

Laxey confirmed yesterday that the rise in its holdings reflected borrowed stock. ''It is stock that other people weren' t going to vote,'' it said.

In April, Laxey announced it had acquired just over 2 per cent of British Land and, using a little-known route in the Companies Act, placed proposals for mandatory share buy-backs on the agenda for today's annual meeting.

It since raised its stake to 2.9 per cent and has added a third proposal, requiring the company to bring in outside managers for its property portfolio.

Although British Land?s shares have been among the best performers in the sector over the past 18 months, they have been among the worst over the past three and five-year periods.

Moreover, even with the improved returns on shares, they are still trading at some of the widest discounts to NAV of any of its peer group.

To narrow that gap, investors are urging British Land to focus its sprawling portfolio, sell non-core assets and use the proceeds to bulk up its development programme and buy back shares.

Financial Times