Ashner blasts NYRT’s board again

Activist investor complains that deal for "shareholder representation" was rejected

TRD New York /
Sep.September 29, 2016 01:40 PM

Another week, another argument over the future of New York REIT. Activist investors Steve Witkoff and Michael Ashner accused the real estate investment trust’s board of “muffling” their voice by refusing to give them representation.

Last month, NYRT’s board agreed to dissolve the REIT and sell its assets, following pressure from Ashner and Witkoff to do so. But in an open letter to the board’s members published Thursday morning, Ashner complained that the board rejected an agreement that would have given the two investors “shareholder representation” on the board.

“Several of the Board’s recent actions that clearly demonstrate it continues to ignore the interests of shareholders,” Ashner wrote.

Ashner, who heads Winthrop Realty Trust, and developer Steve Witkoff jointly invested in NYRT through an entity called WW Investors. The two nominated themselves to the REIT’s board in August.

Apart from seeking representation on the company’s board, Ashner also wants to make Winthrop Realty Partners NYRT’s external manager. He attached a proposed management agreement to his letter that he claims would save NYRT $50 million in “excessive advisory fees” compared to its current agreement with New York Recovery Advisory.

New York REIT had initially sought a $8.4 billion merger with Washington, D.C.-based JCG, but decided to sell its buildings one by one instead after that deal fell apart. It owns a 49 percent stake in the 1.8 million-square-foot Office Building One Worldwide Plaza and owns 1440 Broadway, among other holdings.


Related Articles

arrow_forward_ios
From left: Empire State Building, One Vanderbilt and 220 Central Park South

REITs: A crystal ball for NYC’s commercial real estate

REITs: A crystal ball for NYC’s commercial real estate
Federal Reserve Chairman Jerome Powell (Getty)

Real estate stocks benefit from second quarter rally

Real estate stocks benefit from second quarter rally
TRD Talks Live

Watch major NYC developers tonight on TRD TALKS LIVE

Watch major NYC developers tonight on TRD TALKS LIVE
From left: Colgate chairman Ian Cook and 1115 Fifth Avenue and 912 Fifth Avenue (Credit: Cuny, StreetEasy)

He sold enough toothpaste to buy this tony Carnegie Hill pad

He sold enough toothpaste to buy this tony Carnegie Hill pad
Steve Witkoff and the property at 2805 Lake Avenue

Developer Steve Witkoff revealed as buyer of Sunset Islands home

Developer Steve Witkoff revealed as buyer of Sunset Islands home
Steve Witkoff and 150 Charles Street

Steven Witkoff gets $33M for his penthouse at a West Village building he developed

Steven Witkoff gets $33M for his penthouse at a West Village building he developed
The fifth floor and exterior of 420 Fifth Avenue with Rudder Property Group's Michael Heller (left) and Michael Rudder (Credit: Rudder Property Group)

Witkoff sells two commercial condos at
420 Fifth for $52M

Witkoff sells two commercial condos at
420 Fifth for $52M
Schrager, Witkoff snag $173M refinancing of Public hotel

Schrager, Witkoff snag $173M refinancing
of Public hotel

Schrager, Witkoff snag $173M refinancing
of Public hotel
arrow_forward_ios

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

Loading...