UK real estate investment trust Liberty International plc (LBT) announced on Tuesday that it intends to separate into two businesses - Capital Shopping Centres and Capital & Counties.

It said the separation will be effected by way of a demerger of Liberty International's central London focused property investment and development division, to a new company called Capital & Counties Properties PLC (Capital & Counties), from the rest of the Liberty International Group comprising predominantly the UK shopping centres business.

Liberty International, which will retain its UK regional shopping centre assets, along with its US assets and Indian investments, will be renamed Capital Shopping Centres Group PLC (Capital Shopping Centres).

"The Demerger will create distinct entities with separate strategic, capital and economic characteristics and management teams: Capital Shopping Centres, a prime regional shopping centre focused UK REIT, aiming to deliver strong long-term returns through income and capital growth; and Capital & Counties, a central London focused, non-REIT, property company focusing on total return opportunities in London's real estate market," the group, which is also listed in South Africa, said.