Posted on November 26, 2009 - by Martin Lee

MI-REIT EGM Showdown with Unitholders

Photo by Francisco Belard

The past week saw a tussle going on between the managers of Macarthurcook Industrial Trust and Cambridge Industrial Trust (CIT) as MI-REIT proposed a recapitalization exercise which was firmly rejected by Cambridge Industrial Trust Management (CITM) publicly. CIT had bought close to 10% of MI-REIT after the capitalization plan was announced and they proceeded to gather support from other shareholders to oppose the plan.

Even though CITM originally had something in mind, their plans were disrupted when MAS stepped in to announce that it was not possible for CIT manager’s to manage two different REITs as it might lead to conflict of interests. To add a twist to the story, the current CEO of CITM, Chris Calvert, was the ex-CEO of MI-REIT.

With uncertainty facing MI-REIT unitholders with no viable alternatives in sight, there was expected to be a large turnout at the EGM for investors to clear their doubts on this issue. Read more…

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1. I bought MacArthurCook Industrial REIT on 18 Nov — a bet gone wrong?
2. First REIT: This one is for keeps
3. Trading Log: Review of Capital Commercial Retail REIT