ONE of Australia's best known residential property movers and shakers, Denis Hickey has dumped his role as the head of Stockland's residential business.
Yesterday dramatic developments could also signal that Stockland may not go ahead with its acquisition of FKP’s retirement assets, after the company relinquished its seat on the FKP board.
Stockland yesterday told Australian Property Journal Hickey decided to leave the company following nine years of service, after it was unable to offer him a broader role.
“Denis was looking for a more broader role within Stockland… he wanted something more challenging… and Stockland was not able to offer it to him so it was a mutual agreement,”
Hickey was the CEO of Stockland Residential and also sat on the board of FKP Property Group. Following Hickey’s departure, Stockland confirms it will not be replace his position on the board of FKP, which Stockland has a 15% stake in. Hickey was appointed to the board to review potential transactions between the parties.
Stockland confirmed to Australian Property Journal that whilst it will not replace its position on the board of FKP, the company will continue to have a first right of refusal over FKP’s retirement village assets.
GoldmanSachs JBWere analyst Peter Zuk said the move is positive because it removed any potential conflict of interest issues that may rise if Stockland decided to mount a takeover of FKP’s retirement business.
Meanwhile Stockland has taken the opportunity to restructure the company’s residential business.
The business will be separated into two standalone operating units, residential comprising housing communities and apartments and retirement living.
As well as his current role as Stockland’s executive general manager of strategy and corporate development, David Pitman will also assume the position of CEO retirement living
Meanwhile Stockland’s Queensland general manager of residential Mark Hunter will relocate to Sydney to take on the role of CEO residential and join Stockland’s executive committee.
Other internal changes include the departure of residential communities chief operating officer Nick Perrignon, who is moving back to Perth to pursue another opportunity, and general manager apartments Mark Dickinson.
Stockland shares fell 20 cents or 6.21% yesterday to close at $3.02.
Australian Property Journal
