Hester will take over from Ritblat later this year "as soon as he is able to relinquish his present appointment," says a statement. The 43-year old joined Abbey National as chief financial officer in May 2002. For 20 years before that he was at Credit Suisse First Boston where he was promoted to chief financial officer and then global head of the fixed-income division in both New York and London. His appointment means British Land will finally be able to meet the demands of institutional investors and that the roles of chief executive and chairman be split. Ritblat will remain chairman.

"The breadth of his experience will be invaluable, and we are confident that he will be a worthy successor to John Ritblat," says chairman of British Land's nomination committee Dr Chris Gibson-Smith. "We are fortunate to retain John Ritblat as chairman, where his skills and experience of the property industry will continue to remain invaluable."

The search for a new CEO has not been smooth-running. First choice, Philip Yea the former Diageo finance director, turned down approaches in favor of the top position at venture capitalist 3i.

But the appointment of a senior business figure is likely to reassure the city and investors. British Land is the UK's second largest public property company and has made a name as a shaper of clever financing deals. Its portfolio is currently valued at more than euro 15.8 billion ($19.5 billion) split between office and retail.