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British Land is on the verge of turmoil after it emerged that three of its most senior directors are about to quit.
The Evening Standard can reveal that Andrew Jones, a main board director who has already announced he is considering leaving, is set to take two senior executives with him to set up a rival property venture.
The departures of Jones and his longstanding close colleagues Valentine Beresford and Mark Stirling will see the departure of one-third of British Land's executive committee and will denude the company of three of its brightest property experts.
It is believed that there could yet be further defections from British Land's 25-strong retail team headed by Jones. Industry sources say the effect the trio's departure will have on British Land should not be underestimated.
Jones, 40, who was paid £800,000 last year — the second-highest earner at British Land after chief executive Chris Grigg — has headed the FTSE 100 company's retail property strategy for the past four years.
The departure of Jones, the well-connected Beresford and Stirling will be a major headache for Grigg, the former Goldman Sachs and Barclays banker who was brought in as chief executive to replace Stephen Hester — another banker to have led British Land — when Hester was headhunted to run Royal Bank of Scotland. One senior property expert told the Evening Standard: “Jones is leaving after he failed to get the top job.
“He is undoubtedly a big loss for British Land. He is extremely well respected and as a property man has been a mainstay on a board full of bankers.”
Jones has been close to Beresford and Stirling since they all worked together at Pillar Property, the rival company British Land took over in 2005 for £800 million.
Beresford, British Land's European fund manager, is well-known in society circles. His father Lord Patrick Beresford is the younger son of the seventh Marquess of Waterford and is a noted equestrian and former soldier, as well as being a close friend of Camilla, Duchess of Cornwall.
Stowe and Cirencester-educated Beresford was a page boy at the Duchess's first marriage to Andrew Parker-Bowles and his uncle is the eighth Lord Waterford.
Insiders expect Jones, Beresford and Stirling — who is British Land's asset management director — to set up their own property investment fund which is likely to focus on the bombed-out retail property market. “Jones's expertise is in retail and no one doubts there are some pretty cheap assets around in retail at the moment,” said one source.
A spokesman for British Land declined to comment and said only that Jones has said he is considering leaving the company and added that so far British Land has not received resignations from Jones, Beresford or Stirling.
The news of Jones's mooted departure originally came out after British Land was forced to disclose his intentions during the posting of its circular over the part-sale of the Broadgate development in the heart of the City.
British Land is raising £1 billion from the sale of 50% of the 30-acre estate to Blackstone, the US private equity giant.
Reader views (3)
Valentine Beresford is a highly accomplished executive who has an undoubted track record achieved completely on his own merit. Chriss Grigg is a very astute and competant leader and respected CEO with a proven track record. To insinuate anything to the contrary is incorrect and should be completely discounted.British land is a solid well run company under Chris Grigg and is strongly placed to take advantage of opportunities in the current market.
- Martin Fleishman, London UK, 09/10/2009 12:12
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A meritocracy means just that, i.e. based on merit. Just because someone happens to come from a privileged background (which, after all, is not their fault but an accident of birth) doesn't mean that they don't in fact have merit.
Therefore, unless David Stephens knows Mr Beresford personally or professionally, I'm not sure that he's qualified to comment on whether or not he'll be a loss to British Land.
- Fred Jackson, London, 08/10/2009 18:39
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This Beresford character sounds like just the sort of person who the meritocracy after Big-Bang replaced in the rest of the City after 1987. Probably no loss to British Land.
- David Stephens, London, 08/10/2009 14:50
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