Jeff Schwartz, the chief executive and chairman of the world’s biggest logistics property company, ProLogis, has resigned from both positions as the company halts devlopment.
He is to be replaced as CEO by former ProLogis president and chief operating officer Walter Rakowich.
Stephen Feinberg, ProLogis’s lead board trustee will take over as chairman.
The change in leadership comes as ProLogis puts a halt to all new development and cuts its dividend for 2009 by 52% from $2.28 to $1. ProLogis developments already on site will continue through to completion.
The company also plans to cut 'general and administrative expenses' by between 20-25%. This would include reducing its 1500 workforce.
‘I would like to thank Jeff for his vision and leadership on behalf of the Board and ProLogis' entire global organization. Jeff was the key driver behind our international expansion and accomplished a great deal during his 14 years with the company,’ said Feinberg.
‘With the economy facing significant headwinds due to dislocation in the credit markets and the negative effect on business conditions around the world, Walt brings a deep background in real estate, encompassing both operational and financial expertise.'
'Together, the senior management team is prepared to make the tough choices necessary to ensure the company is positioned to weather this storm and preserve its market leadership position.’
During Schwartz’s tenure at ProLogis he led the transformation of the Denver-based shed giant into the largest logistics property company in the world.
He leaves ProLogis with warehouses in 136 markets across North America, Europe and Asia last valued at €40.8bn (£26.8bn).