The founder of Land Securities, the late Lord Samuel, coined the great property mantra: location, location, location. As if to echo the famous phrase, his company is now being broken up and parked in three separate places – London, shopping centres and property management.

Land Securities has invested in three different property markets, each tending to perform according to different cycles. The company’s London portfolio – £8 billion of mostly office space – has soared in value over the past three years, reflecting the rise of the capital as an international financial centre. Its £6.7 billion retail business is skewed towards the provinces and its value growth has tended to be more pedestrian. And then there is Trillium, which is more of an offices property manager, sitting on 25-year contracts to look after hundreds of buildings for businesses wanting others to tend to the plumbing.

Francis Salway, the chief executive, says the break-up was the outcome of a long strategic review. Yet it is not the end of the process but the beginning of an unusual experiment in the listed real estate sector. Investors now have the option to back Mr Salway’s demerged trio of companies or Stephen Hester’s unified business, British Land. It is a rare opportunity to test the arguments for a demerger – namely that benefits accrue from focusing management and capital on specific businesses.

Land Securities v British Land has become a contest between specialism and synergy. Return to this column in 2010 to find out who wins.

Friends Provident is looking for a new chief after the exit of Philip Moore. As it surveys the wreckage of its collapsed merger deal with Resolution Life, it needs a leader with insurance experience; with the ability and vision to do transformational deals; and with a strong City reputation to restore investor confidence. Does this paragon exist? Well, yes. Step forward Clive Cowdery, who may soon have time on his hands once Pearl takes over Resolution.

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