Shopping centre operator Vicinity Centres has revealed that non-executive director Peter Kahan will replace Peter Hay as chair when he retires in August.

Hay, who has served as chairman since Vicinity was formed in a 2015 merger of Federation Centres and Novion, will retire from the board after the company’s annual results are released in August.

“It has been a privilege to work with such an exceptional board and management team to navigate through the merger and Vicinity’s formation, to see it become the unified and stronger organisation it is today,” Hay said in a statement.

Hay said he is delighted Kahan will be taking over as chairman.

“Peter is a highly experienced and thoughtful director who has made an outstanding contribution to Vicinity’s board during my tenure,” Hay said.

“His extensive and successful property funds management, financial and business background, complemented by his highly strategic approach and vision, position him to be an excellent chairman through Vicinity’s next chapter.”

Kahan, who has been a non-executive director of Vicinity since June 2015, also served as chairman of Vicinity’s Remuneration and Human Resources Committee and is a member of Vicinity’s Audit Committee.

Kahan’s prior roles include The Gandel Group’s executive deputy chair, CEO and finance director.

“It is an honour to be asked to succeed Peter Hay as chairman of Vicinity,” he said. “I am looking forward to working with the board and management team to continue our relentless focus and commitment to long-term value creation for Vicinity’s security holders.”