Big two shop group to split up business

Mar 10 2010 by Iain Laing, The Journal

A SHAKE-UP in the corporate structure of the property firm which runs the North East’s two main shopping centres will lead to a more focused management of its key assets, says its boss.

Liberty International, owner of the Metrocentre and Newcastle’s Eldon Square, is to split the business by demerging its British shopping centres from its London-based property portfolio, which includes Covent Garden and Earls Court and Olympia exhibition halls.

The UK shopping centres’ business will be known as Capital Shopping Centres running a property portfolio worth £5bn.

It will be listed on the main board of the Stock Exchange, with a secondary listing in Johannesburg.

A newly created company Capital & Counties Properties will look after the London portfolio.

Kay Chaldecott, Capital Shopping Centres managing director, said: “Our focus now is to improve on what we have . In Eldon Square we are looking at developing a new flagship store for Next following the recent St Andrew’s Way redeveloment.

“We are also looking at expansion at three of other UK shopping centres including Lakeside (Essex) and Nottingham (Victoria Centre).