Business
Responds to Urban Logistics REIT PLC
Responds to Urban Logistics REIT PLC.
About this update from Achilles Investment Company Limited
[{"type":"text","content":"\n\n\n27 March 2025\n\nAchilles Investment Company Limited\nResponds to Urban Logistics REIT PLC's Latest Announcement\nAchilles Investment Company Limited (\"Achilles\") acknowledges the recent announcements from Urban Logistics REIT PLC (\"Urban Logistics\" or the \"Company\") on 7, 12, 20 and most recently, 26 March 2025.\nProposed Internalisation\nOn 7 March, the Board proposed terms for internalisation. By 12 March, they claimed that \"a significant majority of shareholders spoken to were supportive.\" However, by 26 March, they had suddenly discovered \"a number of constructive suggestions\" necessitating revisions. Achilles awaits the inevitable reworked proposal, which will undoubtedly be far less generous to the investment manager.\nThe Board's belated recognition of the excessive price proposed for the buyout of the management contract only reinforces our belief that the Board are too closely aligned with the investment manager.\nM1 Agency LLP (\"M1\")\nThe Board insists that its relationship with M1 is entirely appropriate, an impressive level of confidence given the substantial fees involved. They now acknowledge that Richard Moffitt agreed in September 2024 to step away from M1, ceasing any role in the business or entitlement to its profits after 30 September 2024. Yet, this crucial fact, six months on, is only now being disclosed.\nAchilles appreciates the Board's newfound commitment to transparency. Notably, Achilles only became aware of the potential disposal, which was announced after challenging one of the Company's financial advisers on the potential unacceptability of the arrangement.\nA Board in Reverse Gear\nShould the requisitioning investors succeed, the expectation is clear: the new directors will work constructively and collaborate with the remaining Board members to conduct a thorough strategic review focused on enhancing shareholder value. Such that, if a third party approaches the Board with a proposal, Sangita Shah and Robert Naylor, if elected, will ensure it is presented to shareholders in a timely manner, prioritising the interests of the Company's owners over those of the investment manager.\nRobert Naylor, Lead Investment Manager of Achilles, commented:\n\"It appears that the Board is backpedalling as quickly as possible. Shareholders are clearly expressing genuine concern as to the governance ...