Capital & Counties chief investment officer to step down

Capital & Counties said on Wednesday that managing director and chief investment officer Gary Yardley will leave the company on 30 June.

The property investment and development group said the roles will not currently be directly replaced on the board.

The Earl's Court investments will be led by group development director Mike Hood, who has been appointed as managing director of those investments as preparations advance for a possible demerger.

Yardley said: "Capco is a special company with a remarkable investment portfolio and dedicated people. I am proud of the success we have achieved at Capco and in particular of the exciting and unique opportunity we have created at Earl's Court, a project of significant vision and ambition. I wish Ian, my colleagues and the business every success for the future, as I take some time out to focus on my other interests and improving my health."

Capco shares rallied on Tuesday following a report that the company was in early talks with Canary Wharf Group, which is owned by Qatar Investment Authority and Canada's Brookfield, about buying a large part of its housing development site at Earl's Court.

Bloomberg said the discussions may not result in a deal and that other suitors for the project could still emerge.

Capco announced last year that it was considering splitting its Covent Garden and Earl's Court estates into two separately listed companies.

Broker Peel Hunt said: "Given the press reports yesterday that Canary Wharf Group was in preliminary discussions to buy Earl's Court, this will inevitably lead to further speculation on Capco’s plans for the site.

"Whilst today’s RNS refers to advancing the plans for a possible demerger, we believe a sale is the most likely outcome and this would also be in the best interests of shareholders. Shares trade on a 35% discount and we retain our 'add' recommendation."