Institutional Shareholder Services is recommending that CommonWealth REIT investors side with dissident shareholders Corvex Management LP and Related Cos. as they seek to change the REIT's board of directors. The two investors, which own 9.6% of CommonWealth, "have made a compelling case that change is necessary," ISS said in a report.
Commonwealth Bank of Australia has accepted a $2.7 billion offer from Dexus Property Group and the Canada Pension Plan Investment Board for its Commonwealth Property Office Fund. The fund owns
26 office buildings throughout Australia. The portfolio had been the subject of a heated bidding war.
Perry Corp., a hedge fund, is joining other shareholders of CommonWealth REIT to call for the removal of the REIT's board. Perry Corp. owns a 5.5% stake in the REIT. The dissatisfied shareholders say the REIT is undervalued and has poor corporate governance procedures.
Corvex Management and Related Cos. increased their holdings in CommonWealth REIT after they were unable to prevent the REIT's stock offering last week. The two shareholders acquired about 1.9 million shares and now own a total of 8.5% of the REIT.
The CREW Network annual convention, held this month in Washington, D.C., featured panel discussions on the need for greater diversity on public boards, policy issues that could affect the real estate industry, real estate capital markets, sector-specific analyses, the REIT approach to real estate investment and more.