Capital Shopping Centres will be a UK REIT focusing on prime regional shopping centres, while Capital & Counties will lose its REIT status to become a listed property company focusing on central London development opportunities.

As at 31 December 2009 Capital Shopping Centres had £5.0bn of assets generating £292m in rental income with £2.7bn of debt. Capital & Counties' portfolio – primarily made up of the Covent Garden estate and the Earls Court & Olympia exhibition centres – was valued at £1.24bn, producing £74m in rental income and carrying £463m of debt.

Patrick Burgess, the current chairman of Liberty International, will become chairman of Capital Shopping Centres and David Fischel, the current chief executive of Liberty International, is to be chief executive of Capital Shopping Centres. Ian Durant, the current finance director of Liberty International, becomes chairman of Capital & Counties and Ian Hawksworth, the current managing director of Capital & Counties, becomes chief executive of Capital & Counties.

Burgess said: "The proposed demerger responds to a changing approach to investment in real estate, both in the equity markets and in the property market, requiring greater focus and more active management. Coupled with the current experience and strength of the respective management teams, augmented as strategic growth opportunities arise, the demerger will best position both businesses to deliver strong shareholder returns."

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