Related closing in on CommonWealth board

Activist shareholders score big win as stockholders vote to remove REIT's trustees

New York /
Mar.March 19, 2014 08:35 AM

Related Companies, along with investment firm Corvex Management LP, is getting closer to ousting the board of office property management trust CommonWealth REIT after a vote from stockholders.

Related was among the major investors spearheading the push to remove the board of trustees.

A two-thirds majority was required to remove the current slate of trustees. Around  81 percent of the stockholders backed the move. CommonWealth now has until March 25 to have results declared and consents inspected. Related CEO Jeff Blau argued that recent underperformance and conflicts of interest within CommonWealth were a result of the REIT’s ownership of an external management firm.

“The shareholders have exercised their rights and we look forward to working with the trustees in the coming days to arrange for an orderly transition process that best protects the interests of all shareholders,” said Blau and Corvex’s Keith Meister of Corvex and Jeff Blau, who jointly own 9.6 percent of CommonWealth, in a statement provided to Bloomberg News. “We will immediately reach out to the trustees to begin these discussions.”

Sam Zell and David Helfand, both of Equity Group Investments, have said they would head up the new board of trustees if a new board is selected. [Bloomberg News]Mark Maurer


Related Articles

arrow_forward_ios
Related's Jamar Adams and Steve Ross with 14-06 Gateway Boulevard (Credit: Getty Images and Google Maps)
Related is the latest developer to target the Rockaways
Related is the latest developer to target the Rockaways
Sam Zell (left) and Barry Sternlicht (Photos by Studio Scrivo and Emily Assiran)
Battle of Monmouth: Zell and Sternlicht’s $2B struggle over warehouse REIT
Battle of Monmouth: Zell and Sternlicht’s $2B struggle over warehouse REIT
Gravity CEO Moshe Cohen and Related CEO Jeff Blau (Getty, Gravity)
Related partners with electric vehicle startup to bring charging stations to NYC
Related partners with electric vehicle startup to bring charging stations to NYC
Sam Zell of Equity Commonwealth and Michael Landy of Monmouth Real Estate Investment (Getty, ACRE)
No deal! Monmouth shareholders reject Equity Commonwealth
No deal! Monmouth shareholders reject Equity Commonwealth
34 Desbrosses Street and Related CEO Jeff Blau (StreetEasy, Getty)
Related scores $258M Blackstone loan for luxury Tribeca apartment building
Related scores $258M Blackstone loan for luxury Tribeca apartment building
Toll Brothers CEO Doug Yearley and Equity Chairman Sam Zell (Twitter/Toll Brothers, Getty)
Equity, Toll Brothers partner on apartments for $1.9B
Equity, Toll Brothers partner on apartments for $1.9B
Starwood CEO Barry Sternlicht and Equity founder Sam Zell (Getty)
Monmouth Real Estate board again affirms Equity merger
Monmouth Real Estate board again affirms Equity merger
Equity Founder Sam Zell and Starwood CEO Barry Sternlicht (Getty)
Starwood ups offer for Monmouth Real Estate amid pushback on Zell deal
Starwood ups offer for Monmouth Real Estate amid pushback on Zell deal
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...