LAND SECURITIES said yesterday that it intends to convert itself into a tax-efficient real estate investment trust (Reit) on January 1 in a move expected to coincide with the appointment of a new non-executive chairman.

The FTSE 100 property group, whose portfolio includes New Scotland Yard and the Piccadilly Lights in London, has appointed headhunters to search for a new chairman.

David Rough, former head of Legal & General’s investment arm and an independent director of LandSecs, is tipped in the market to take over from Peter Birch, who has spent eight years at the helm.

However, sources close to LandSecs say that external candidates are being considered and the board is flush with other potential candidates, such as Sir Winfried Bischoff, chairman of Citigroup Europe, and Bo Lerenius, chief executive of Associated British Ports.

Britain’s biggest listed property company said that it planned to convene an extraordinary general meeting this autumn to change its articles of memorandum to enable it to become a Reit.

Mr Birch has presided over a period of huge change at LandSecs, which has slimmed down its property portfolio and refocused its business around retail, London offices and property outsourcing through its Trillium division.

LandSecs confirmed that it plans to distribute to shareholders the tax savings from converting to a Reit, through higher dividend payments.

The company said that this meant that its next full-year dividend was likely to be about a third higher, equivalent to 60p, up from 46.7p this time round. At yesterday’s price of £18,49, up from £18.17, the shares would yield just over 3 per cent.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive