Segro shakes up management team

The industrial park developer Segro unveiled a shake-up ofits management structureyesterday.

The office parks owner, formerly known as Slough Estates, is to halve the number of its UK units to three. They will consist of its flagship park – the £1.4bn Slough Trading Estate – London and the regions.

John Heawood, the current head of UK property, will leave the business in July after the changes, and three new managers are being put in his place to head the new units.

The company is also planning to sell off a large chunk of its property in the UK, with reports suggesting that up to £500m of property could be sold. Segro declined to comment on the value of the property for sale but last month the chief executive, Ian Coull, said that the company plans to sell more UK properties than it develops in order to increase the proportion of revenue from continental Europe.

As part of the shake-up a business development department is being established, which will focus on major customers and market segments, and an environmental sustainability department will also be set up.

Mr Coull said the initiatives would "help us stay ahead of the game by giving us the right structure and team to exploit the opportunities across the UK and continental Europe".

Shares in the company, which became a real estate investment trust in January, fell 3 per cent, or 15p, to 493.5p yesterday. Its shares have fallen more than 30 per cent over the past six months amid general fears of a market slowdown.

Slough Trading Estate will be led by Kevin O'Connor, the London arm by Phil Redding and the remaining UK businesses by Gareth Osborn. The head of mainland Europe, Walter Hens, will become head of business development when a replacement has been found.

Segro completed the £1.5bn sale of its science parks business in California last month.