Vision Capital, a Canadian financial investment firm, has been actively protesting against Ires Reit’s board over the last year. The company now seeks to recover up to an astounding €425,000 in related campaign expenses. In addition, Vision Capital intends to put forth three directors for nomination during the approaching annual general meeting (AGM). Unfortunately, attempts at discussions to settle the dispute over board seats, following a tumultuous extraordinary general meeting (EGM) in the second month of the year, ended fruitlessly.
Despite Ires Reit board’s vigorous endeavours to mend fences with Vision Capital, including the proposed concession of two board seats so as to forestall further operational upheaval and needless expenditure of shareholder’s cash for the ongoing strategic review, no consensus has materialised,” Ires Reit confirmed in a statement released on a Friday.
The motions proposed by Vision Capital are now expected to join the list of resolutions for the AGM, which are required to be issued to all shareholders by the end of the immediate week to uphold potential regulatory rules in advance of the May 2nd meeting.
Vision Capital’s earlier bid in February to exchange five Ires directors and advocate for a company sale or split within a two-year window was opposed by shareholders. Still, about 40% of the voting shareholders, a considerable minority, supported the main resolutions proposed by the Canadian firm.
Ires Reit responded by stating its lack of belief in any valid grounds for covering a significant portion of the expenses incurred voluntarily by Vision Capital, particularly those related to the disputed EGM.
“The board deems this suggestion as being exceptionally unusual and in conflict with ideal governance practices, while steadfastly pledging to make choices centred around the welfare of all shareholders,” it remarked. Previously, Vision Capital criticised the running costs of Ires Reit.
Meanwhile, Ires Reit’s board, under new Chairman Hugh Scott-Barrett, is actively embarked on a comprehensive strategic review of its own and aims to provide a “substantial update” prior to the AGM.
The analysis, perceived as a protective action in response to Vision’s strategy, is considering what the firm describes as an “extensive array of strategic initiatives” for optimising return on investment for its shareholders. This could encompass amalgamations, integration with other companies, reassessing its status as a publicly listed Reit, selling off the company, or disposing of its assets.
Vision, holding around 5 percent of Ires, has consistently argued that irregularities in the regulations covering Irish real-estate trusts (Reit), necessitating a considerable dividend payout rate, in combination with Ires’s proportionally substantial debt load compared to Reit guidelines, restricts its investment in expansions during periods of substantial accommodation shortages in the Republic.
The Canadian investor also critiqued the fact that shares in Ires, possessing 3,734 housing units in its portfolio, have continuously been traded at a notably lower price than the actual value of its assets.
Eddie Byrne, the anticipated chief executive for Ires, is set to join the firm in the forthcoming week. He will officially take over from Margaret Sweeney as the CEO on the eve of the annual general meeting.