Landsecs Split

The Sunday Times reviews the announcement by LandSecs to divide the largest listed real estate business into three.

The reaction from the other major players within the business has been interesting.

'Short term knee reaction at a time when the financial sectors are out of favour' - British Land's former chairman.

'I am not 100% convinced they are pursuing the right strategy' Mike Slade of Helical Bar

Other commentators see the split as detracting from the business, increasing the management costs, lack of visibility for shareholders. The break up is reckoned to cost Landsecs nearly £75m.

The city sees this as a real chance for competitors to come in and buy some of the more easy to chew chunks of the company.

In Landsecs defence the chief executive insists that the break up is part of a long term strategy dating back to 2004, enabling the separate business units to create superior return and carry out acquisitions.

Will this generate a similar break up of the other big boys in the UK real estate market? We shall wait and see...