Alternative Income REIT is in discussions with Glenstone Property that could lead to the latter taking a seat on the REIT’s board.
Glenstone launched an offer to buy a stake of up to 25% in Alternative Income in October, and ultimately acquired a holding of 14.7%.
In a stock market update on shareholder engagement, Alternative Income REIT said it is now in talks with Glenstone over giving a representative for the company a seat on its board.
Alternative Income REIT is also engaging with shareholders over their rejection at its AGM last week of a proposed new investment strategy that would have seen it reduce the target WAULT on its investments from 18 years to 12 years and remove the requirement for least 85% of its portfolio’s gross passing rent to be inflation-linked. Some 58% of votes cast were against the change, which had been put forward since the REIT replaced AEW with M7 Real Estate as investment adviser.
The company said after the AGM: “The board considers that the proposed amendments would have allowed the company to take advantage of the current market opportunities and deliver significant added value to shareholders.
“Given the lack of support from shareholders for the amendments and recognising that the group remains sub-scale, the board will engage immediately with shareholders, including those new to the register, on a range of potential options for the future strategy of the company.”
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