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Simon Carter is to step down as chief executive of British Land to join a warehouse developer backed by Singapore’s sovereign wealth fund.
The FTSE 100 real estate owner on Monday said Carter would leave after serving a 12-month notice period to become CEO of P3 Logistics Parks, a GIC-owned investor and developer of logistics properties in Europe.
Carter has been chief executive of British Land since 2020, and steered the company, which owns a £9.8bn portfolio of offices, mixed-use developments and retail parks, through its response to the Covid-19 pandemic and the subsequent rise in interest rates.
Under Carter, the UK landlord amassed a portfolio of retail parks while also holding steady on its London office portfolio, both of which are seeing a boost from supply shortages.
The “contrarian calls” made during the pandemic to invest in retail parks had “positioned British Land for long-term success”, said Carter.
“I will be leaving the business with market-leading positions in London campuses and retail parks — both of which are benefiting from strong rental growth in supply-constrained markets,” he said in a statement.
British Land said it would undertake a search process to identify a replacement for Carter. Jefferies analyst Mike Prew wrote in a note to clients that there were no obvious internal candidates for the role.
The company’s shares fell 2.4 per cent in late-morning trading. The stock has risen 18 per cent over the past 12 months but is down more than a tenth over the past five years, giving the company a £4bn market cap.
British Land’s property portfolio was valued at £9.8bn as of September 30 last year, 1.2 per cent higher than 12 months previously. However, the portfolio was valued at £12.3bn in 2019 before falling 10 per cent the following year.
The company’s historic focus on retail property and offices meant it missed out on growth in other parts of the real estate market, such as warehouses and student housing.
Carter belatedly sought to build a portfolio of urban warehouse assets at British Land but the initiative did not meaningfully progress.
The company’s mixed-use developments include Broadgate at Liverpool Street in the City, Paddington Central and Regent’s Place.
Analysts at Peel Hunt said in a note to clients last week that British Land’s portfolio of London retail parks and campuses was set for further rent increases, partly owing to a shortage of quality space.
Panmure Liberum analyst Tim Leckie told the FT that while British Land was “arguably” late to pivot to retail parks and logistics, navigating a company exposed to shopping centres and offices through the pandemic was “no small challenge” for Carter.
“We judge his [Carter’s] tenure more positively, with portfolio repositioning and well-timed London development activity focused on Broadgate/Liverpool Street Station greatly improving the outlook for earnings growth.”
He added: “Real estate businesses like British Land take time to reposition, and on balance his successor inherits a business better positioned for the challenges that emerged post Covid-19.”