Aires Leat's office in Dublin.Photo: Collins
Vision Capital earlier this year asked Aires REIT shareholders to help pay for a sometimes tough campaign against the country's largest private sector landlord.
The rebel shareholders are seeking costs of up to 425,000 euros, Aires reported today. The request will be presented to shareholders at the company's upcoming annual general meeting (AGM).
The Canadian fund is also considering recommending three candidates to Mr. Ailes' board of directors. Mr. Ailes said all three of these proposals had been previously considered and rejected by his shareholders at an extraordinary general meeting in February.
Ailes added that no agreement has been reached between the companies since that meeting. The company offered Vision Capital two seats on its board of directors, subject to both companies agreeing to the terms of the cooperation agreement.
However, these arguments have not been successful.
The company said it did not believe there was a good reason for Mr. Ailes to pay Vision's “self-incurred costs,” including those related to the recent EGM.
Paying for a significant portion of these activism costs with shareholder funds is “highly unusual and contrary to good governance practices,” Ailes said in a statement.
The company is currently undergoing a strategic review and will consider “a full range of strategic options” to maximize value for shareholders.
These include consolidations, mergers, reorganization of the company as a publicly traded REIT, sale of the entire issued capital of the company, and sale of assets and return of value to shareholders.
Aires owns approximately 3,700 properties in Dublin and Cork, with a total value of €1.43 billion as of June last year.
Unit occupancy is currently 99%.
Last month, the Aires board of directors appointed Eddie, an experienced financier and real estate expert, as CEO to replace outgoing CEO Margaret Sweeney, who will step down on May 1, the day before the general meeting of shareholders. Mr. Byrne was nominated.
Last October, Sweeney announced his plans to step down as CEO of Aires after more than six years at the company. In February, she and the rest of her board abandoned Vision Capital's election campaign, and all proposals from rebel shareholders and her supporters were rejected at a shareholder meeting.
