Civitas Social Housing has declined to engage further with a hedge fund shorting its stock.
The REIT said in a stock exchange notice that it “does not intend to respond” to a second open letter from ShadowFall, which has been publicly questioning Civitas’s business practices and certain deals struck with the providers of care services in its properties.
In its latest letter, ShadowFall described Civitas’s explanation of its dealings with Specialist Healthcare Operations, with which it has struck joint acquisitions and split the real estate assets and operational businesses, as “hollow”.
The fund also proposed a roundtable discussion to include the company as well as “Civitas’s major shareholders, sector specialists, the regulator and other key stakeholders in the [specialist supported housing] sector”.
In today’s stock exchange statement, Civitas said: “CSH and its investment adviser continue to make themselves available to meet and speak with shareholders and continue the regular and professional dialogue with the Regulator of Social Housing and with the company’s various counterparties.”
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