The second-in-command at Land Securities, Britain's biggest property company, abruptly left today.

The group, which tapped investors for £755 million in a rights issue in February, announced that Mike Hussey would leave at the end of June.

The move comes after the company's decision, late last year, to abandon a plan to split into three companies. The demerger would have seen three new companies formed - one specialising in London property, one in shops and the other in an outsourcing unit. Mr Hussey, who manages the group's £5.1 billion London portfolio, had been groomed to take over as head of the demerged London retail estate unit.

In a statement, Alison Carnwath, chair of Land Securities, said: "Demerger is no longer a strategic option for the company and following that decision it was agreed by the board and Mike that his future lay best outside the company."

Mr Hussey said: "Following the decision not to demerge, it was clear that the company had some important objectives to deliver in volatile market conditions. I was delighted to work with colleagues to achieve these goals. With this done I can move on with confidence in what I leave behind."

His former team will now report directly to Francis Salway, chief executive. Land Securities' London portfolio comprises several landmark properties including Westminster City Hall and Piccadilly Lights in central London.

A spokesman for Land Securities insisted Mr Hussey's departure was in no way linked to the recent loss announced by the company.

In May the group reported a pre-tax loss of £4.77 billion for the year to the end of March. It said the results reflected the "unprecedented market conditions experienced in the property industry."