Ian Coull passed away in the early hours of this morning.
The former SEGRO chief executive was among the industry’s most respected and best liked figures.
Announcing his passing, his family said: “We are very sad to inform you that Ian died at 1am this morning.
“His wishes were for a small private cremation and then a service of remembrance to follow in a few weeks. We know that Ian was a much-loved man and many of you will want to join us at this service. We will let you know the arrangements in due course, but please feel free to share this news as appropriate.”
The 65-year-old had been unwell for some time. One of his last public appearances was at the British Property Federation annual dinner in November where he was given a special award in recognition of his contribution to the industry.
Coull was a genial and gregarious character of both social and intellectual intelligence. A manager of warm instinct, rather than cold calculation. A man who has left his stamp on Segro, even though he retired in 2010. When interviewing him in late 2009 for Planet Property, he insisted I meet his finance director, David Sleath. After the encounter, Coull made it clear that he wanted Sleath to have his job. So it came to pass. The essence of that interview was reserved for very last words in the book. “There will undoubtedly be a crash in property values again… don’t ever put yourself in a position where you think it is just going to go up all the way, otherwise…”
In September 2002 the Tory-voting chairman of Slough Estates, Sir Nigel Mobbs, announced that Labour-voting Coull would be joining as chief executive. The tall and burly 52-year-old Scot joined the even taller and burlier 66-year-old Englishman in January 2003 at Slough’s Bath Road offices. Coull was the the son of a baker and a nurse, a former trade unionist who had run Sainsbury’s property empire for the previous 14 years. Sir Nigel was Lord Lieutenant of Buckinghamshire, ex-chairman of the right wing pressure group Aims of Industry and a treasurer of the Conservative Party. Not a match made in political heaven.
But the business, with £2.25bn of net assets, was struggling, finding it hard to shake off its “sleepy giant” blanket. A quarter of the estate appeared to have been collected on holiday trips: a golf complex in Florida, an oil and gas company called Tipperary from Colorado with a subsidiary in Australia. But, to the City, it was the UK industrial assets that had being left to doze. “When I joined Slough it felt like we had ‘bloody tenants’ instead of customers,” said Coull in 2009. “That got changed.” Not terribly quickly. The Perth-born former rugby international was more slow-shoving forward than rush-and-dodge fly-half.
Shareholders complained at the slow turnaround. Coull countered afterwards, “The portfolio needed a good deal of cleaning up and because we were at the bottom of the cycle I did not want a garage sale.” Sir Nigel Mobbs died at the age of 68 in October 2005. By then, Coull’s promised changes were starting to take effect. Slough had begun to buy into industrial development businesses on the continent. The 54% stake in Tipperary was sold in June 2005 for $100m. But Coull kept investing in the US. Bingo. Biotech park assets valued at £622m in 2003 were sold in June 2007 for £1.5 billion. A £250m special dividend was distributed. Not the best move in hindsight.
In January 2007, Slough had converted to REIT status, forking out £73m for the privilege of no longer paying capital gains taxes. “If it’s not the top of the market, it’s pretty damn close,” said Coull, chafing at a 2% tithe based on a toppy value of the portfolio. At the same time, he changed the company name to Segro. A moniker likened by all to a brand of tomato fertilizer. The switch marked a point of shrinkage, not growth. Shed prices fell 35% from their July 2007 peak by early 2009. Losses of £1bn were racked up as asset values crashed. Gearing stood at 120% by early 2009. Coull raised £500m with a giveaway rights issue, offering shares trading at 75p for 10p. Gearing fell to 77%.
He kept his nerve. At the time, the combined market cap of Land Securities, British Land, Hammerson and Segro was £5.8bn, against a combined NAV of £10.8bn. Crazy. That month, Hammerson boss John Richards invited a few chief executives to dinner, to mark my retirement as editor of Estates Gazette. My lasting memory was of Coull’s optimism. He called the bottom of the market that night. Within weeks, Segro was pursing smaller rival Brixton, which had been unable to launch a rights issue. In July 2009, Segro paid £110m for the historic business whose net assets were valued at £1 billion a year earlier.
Ian Coull, who passed away this week at the unfairly youthful age of 65, was one of the most respected and best liked figures in the industry, writes Estates Gazette editor Damian Wild.
The former SEGRO chief executive (and much else besides) was also among the most decorated. He received the EG Outstanding Contribution to Property Award in 2010 and just last November was presented with a special award at the British Property Federation annual dinner.
He was clearly unwell that evening but made time for what was often a queue of well-wishers lining up at the top table. Since retiring from SEGRO in 2011, until ill health forced him to stand down last year, he had been one of this industry’s most in-demand non-execs. And for good reason: his charm, humour, expertise and judgment will be missed.
So sad to hear Ian Coull passed away today. Sincere, modest, great sense of humour, knowledgeable – a true gentleman.
— Mike Hussey (@Mr_Property_W1) January 28, 2016
