M&A advisers at several of the biggest investment banks are leading a £3.4bn tie-up between two listed property developers as a record year for UK real-estate dealmaking draws to a close.

Property developer Hammerson has agreed a recommended all-share deal to takeover Intu Properties, which owns and runs UK shopping centres. The deal values Intu at £3.4bn and will create an enlarged real estate investment trust with a gross asset value of £21bn.