Security Capital European Realty (SC-ER) is liquidating the portfolio of subsidiary City & West End (C&WE) following the breakaway of the London-based developer’s management.
Patrick Despard, who sold the majority shareholding of C&WE to SC-ER in 1998, will take the company name and invest heavily in a new development programme. He has already lined up his first scheme, the redevelopment of a Savile Row block, which he bought from the Pollen Estate.
Despard will manage and dispose of the remaining properties owned jointly by SC-ER and C&WE; they are worth £250m.
Despard has been selling buildings over the past six months to clear the way for the split. The latest is the ITN Building on Gray’s Inn Road, which fund manager Doughty Hanson is buying for around the £93m set by DTZ Debenham Tie Leung.
It takes the sum of C&WE disposals well over £200m in the past four months following sales of Cleveland House; 54 Pall Mall and 7 Burlington Gardens.
Despard’s is the third high-profile departure this year to hit companies in which SC-ER has invested.
In March, Akeler’s chief executive Mark Glatman quit, and William Palmer left Acorn Self Storage.
