Keith Meister and Jeff Blau world team buy real estate investment trusts

Keith Meister and Jeff Blau world team buy real estate investment trusts 

World REITA Ş (NYSE: CWH) share prices soared more than 50 percent on Tuesday activist investor Keith Meister and development related entities, provided $ 25 per share after the acquisition of the company, estimates value of its $ 2.1 one billion (", ¤ 1.4 bn). 

Mestre, PROTA © GA © billionaire investor Carl C. Icahn and founder of hedge fund Corvex management, real estate developers related CEO, and Jeff Blau, yesterday revealed that they entity has accumulated a 9.8% ownership stake in the Commonwealth and ready and willing to complete the full takeover. 

They open letter they sent to REITA ™ ð management on Friday 50 argued that the company is in urgent need to change the slide presentation. Pointing to the recent disappointing financial performance, poor leadership and a lack of independence on the board, Mestre and Broughton said that if the management rejected the offer, they will seek to remove CommonWealthâ shareholder vote by the Board. Mr. Meister Brau and requirements, real estate investment trusts to abandon its plans to issue 270,000 new shares, the proceeds planned for some debt retirement. 

Main points of concern for the Corvex and related companies CommonWealthâ € ™ external management structure, according to the payment of management is based on the value of assets under management, rather than performance. According to Citigroup note released Monday, the structure provides encouragement REIT acquisition of assets, regardless of its quality, and the issue of shares, these acquisitions funds. Reuters quoted Citigroup analyst Michael · Bilerman He said: "Commonwealth record of poor operating performance relative to the office real estate investment trust peer group from external advice and the company's management structure, which will result in uneconomical decision, and the shareholders and management in an unfair field.

New York Times

DealBook system reports, Commonwealth Fund president Adam Portnoy, his father and veteran director Barry Portnoy has received in the past five years, approximately $ 336 million (A, ¤ 222 million) in management fees , a figure that represents more than 20% of Reta latest stock market before prices soared. In last year broadcast a conference call with Wall Street analysts Stifel Nicolaus Adam Portnoy direct addressing in these words: "œDonâ When I told the investor's investment strategy, with regard to the Commonwealth, to take personal and constructive please, but the balance sheet, the operation, there is only zero confidence in investors. most people use the term uninvestable.

World spokesman yesterday rejected the criticisms and accusations against the management company disappointing results, a large number of suburban property, since the 2008 financial crisis, which have seen declines in value. Real Estate Investment Trust said it would begin shifting its focus of urban real estate, it plans to sell dozens of suburban property. The spokesman said that the company's board will "thoroughly review the [acquisition] for the record, and then decide when or how to meet the" related companies and Corvex....