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Home REIT faces a boardroom coup: Shareholders call for short-seller to take over as the company faces a series of lawsuits from investors
Troubled Home REIT faces a boardroom coup and series of lawsuits as it plunges deeper into crisis
Angry shareholders have turned to short-seller Fraser Perring — whose firm Viceroy Research published a damning report on the homeless landlord in November — as a possible savior.
In a dramatic development that has put pressure on Home REIT bosses, Perring said he has been approached by investors who want him to take control of the company and turn it around.
Savior? Angry Home REIT shareholders have turned to short seller Fraser Perring (pictured), boss of Viceroy Research
“I’d consider taking it if they gave me a free hand,” he told the Mail.
“When investors contact a short-seller, it really shows distrust in current management.”
Steps to install Perring came as the company weathered a frosty annual general meeting with investors in London yesterday.
In addition to pushing for change at the top, shareholders are preparing to sue Home REIT as confidence in the existing board evaporates in the face of an increasing series of crises.
The company has been embroiled in disputes with several major tenants who have withheld payments in protest at the condition of some properties.
Trading in its shares has been suspended since the beginning of the year after the company failed to publish results on time. Meanwhile, a forensic accountant has been called in to investigate allegations of bribery.
Perring did not attend yesterday’s AGM, blaming “train delays”, although two representatives from Viceroy were present.
The 49-year-old told the Mail that several disgruntled investors, including a major shareholder, have contacted him with plans to file lawsuits against both Home REIT’s management and asset manager Alvarium, which founded the company in 2020.
Others urged Perring and his associates to take control of Home REIT and turn it around, though no timeline has reportedly been set.
The threat of lawsuits and coups is another headache for Home REIT as law firm Harcus Parker tries to recruit disgruntled investors for its own claim against the group.
Scrapped: Our report last week revealed how Home REIT has been accused of defrauding shareholders
Nearly 80 percent of Home REIT’s shares are held by institutions, meaning some big names could be behind moves to protect their money or save the company.
During the succinct and chaotic AGM, several analysts and investor representatives were nearly turned away due to confusion over required shareholder documents. In a controversial move, the media was also barred from participating.
No resolutions were put to the vote at the meeting because there were no accounts, and shareholders were left uninformed about the state of affairs.
In text messages seen by the Mail, an investor said they had “never heard so much nonsense in my life.”
Amid the growing sense of chaos, a suitor entered the fray last week with a takeover bid that could save the company.
London-based investment firm Blue Star Capital made an unsolicited bid for the firm.
The bidding vehicle, Bluestar Group Limited, is controlled by director Benoit Gotlieb, who is involved in running Bluestar Advisors, which is part-owned by Alvarium, the investment firm that originally founded Home REIT.
An investor who left the AGM seemed uninterested in the possibility of a takeover, saying Bluestar’s nosedive was being used by Home REIT as a “shield” to avoid uncomfortable questions about the company’s plight.
“I think investors want them to hurry up and figure it out,” they said.