Rob Noel is to take charge of the UK’s largest listed property company after Francis Salway ends his eight-year reign on 31 March.
The announcement, which has been on the cards since Noel joined Land Securities as heir apparent in 2010 came sooner than many expected.
A further 18 months would have allowed time for Noel, who is spearheading the £5.9bn London Portfolio’s ambitious development programme, to “prove himself first by delivering on the development pipeline”, according to observers.
“Rob seems an excellent replacement, although he has not been in the job long enough to demonstrate that – 18 more months would allow time for the decisions he has made to filter through,” one source said.
However, others saw benefit in the timing given that Salway, 55, has lead the FTSE 100 firm for eight years. “You don’t want to overstay your welcome. This year is not going to be out of the ordinary for LandSec so why not hand over to someone now?”
As Salway was the last of the boom-time bosses who were forced to carry out dilutive rights issues at the bottom of the market, there had been speculation his departure could have come sooner.
“In the investment community, certain people are surprised that he stayed this long. The rest of the company he kept, such as John Richards at Hammerson and Stephen Hester at British Land, have gone.”
As to what can be expected from 47-year-old Noel, he says there will be no change in strategy. He will continue to run the London portfolio – which represents LandSec’s 60% concentration on offices – with support from Scott Parson and Colette O’Shea on the executive committee.
One source commented that this may be because after two years, Noel will have a clear view of the division. “It may be easier to supervise people who can see through his vision rather than recruit someone new, as it could be difficult to back someone else wanting to do something else,” he said.
His office market heritage also means that his leadership of the REIT’s £4.9bn retail business will be closely watched.
Noel’s promotion came as the REIT announced falling vacancies, despite the torrid occupier market.
In a trading statement, it said vacancy rates fell from 3.3% to 3.1% at the end of December, although it did not escape occupier administrations, which edged up from 0.4% to 0.6%.
bridget.oconnell@estatesgazette.com
