Managing director of developer's London region to leave by mutual consent at end of June

Mike Hussey, the managing director of Land Securities' London division, is to leave the company after seven years.

Hussey led the development of Land Secs projects such as New Street Square and One New Change. He was also a driving force on the £2bn Victoria Interchange project currently awaiting planning consent.

Alison Carnwath, chairman of the company, said that Hussey's departure had been prompted by the shelving of its plans to demerge. The London MD was set to become chief executive of a separate company dedicated to London office development.

She said: “While the company was preparing for a demerger, Mike was set to become the chief executive of a major quoted property company. 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. All of the board thanks him and wishes him every success in his future career.”

Hussey added: “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 and excitement about what lies ahead.”

Hussey's departure signals that Land Securities' return to new development will be some way off. The company has so far endured a torrid 2009, having announced a record £4.8bn loss last month and being forced into a £756m rights issue earlier this year.