PRS REIT chair quits to calm shareholder pressure

The chairman of PRS REIT has quit so the company can reach a “near-term resolution” with shareholders pushing for his exit. Harwood Capital, Waverton Investment Management, CCLA Investment Management, Alder Investment Management and CG Asset Management had requested a general meeting at which shareholders could vote to remove two of PRS REIT’s five existing independent non-executive directors, chairman Stephen Smith and Steffan Francis. They wanted Robert Graham Naylor to join the board as non-executive chairman and Christopher Mills of Harwood Capital Management as a director. In a stock market update, PRS REIT said it has now reached an agreement under which the shareholders will withdraw their requisition notice in return for changes. Smith will step down at the REIT’s annual general meeting in December, with Geeta Nanda, senior independent director, becoming interim chair and leading the appointment process for a new, permanent non-executive chair. Naylor and Mills will be appointed to the board as non-executive directors after the announcement of full-year results in early October. Francis will remain, “ensuring continuity of property experience”.  The company said it would “review strategy with the newly constituted board and provide an update when appropriate”.