Home REIT has appointed Michael O’Donnell as its new chair.
The current Big Yellow board member will succeed Lynne Fennah as independent non-executive chair of the troubled REIT with immediate effect, while Fennah will remain on the board as a non-executive director “to provide continuity”.
An update from the REIT this morning said: “The remaining members of the board understand that shareholders would like to see a refresh of the board and so they will step down on publication of the company’s financial results.”
O’Donnell joined the Big Yellow board in 2021. He was previously on the board of Helical, and chair of its remunerations committee, from 2011 to 2019.
He faces an uphill struggle to restore the REIT’s fortunes, after a series of scandals led it to suspend its shares at the start of last year. The REIT has been forced to pivot away from its core mission to invest in housing for the homeless in an attempt to steady the ship by AEW, which has also been selling assets at a steep discount to shore up its financial position. It now faces legal action from shareholders, after the latest figures suggested that their stakes were now worth a tenth of their investment.
O’Donnell said: “Home REIT continues to face challenges but progress on critical workstreams is now well under way, with the publication of the audited results a key priority. I am committed to protecting the interests of all Home REIT’s stakeholders and look forward to meeting with them over the coming months.”
Fennah said: “I recognise and share investors’ frustration at the events which have unfolded over the last 14 months and the deterioration in the performance of the company. With a new investment manager in place and the stabilisation of the company’s portfolio and financial position ongoing, now is the right time to step aside. Michael brings extensive restructuring, public company and sector experience together with a strong conviction in taking the business forward.”
O’Donnell has a background in private equity and complex restructuring situations, and has chaired numerous businesses in challenging circumstances, several of which have had a significant real estate element.
He also has experience in the social care and wider healthcare services sectors, including as chair of Cygnet Health Care, where he oversaw the sale of the business.
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