Landlord Ires agrees settlement with activist investor after failed board campaign

Vision Capital has also agreed a standstill on initiating or participating in any further shareholder activist campaigns until after the company’s 2025 AGM

The agreement means that Vision Capital will vote in favour of the Ires board's recommendations until next year's annual general meeting. 

Following a protracted fight over the future of the company, the board of Irish Residential Properties REIT (Ires) has announced a co-operation agreement with Vision Capital which will see two of the activist investor’s nominees join the board.

This comes days after Ires said Vision, which owns 5% of the company, sought a reimbursement of €425,000 from shareholders for its failed campaign to secure five board seats at an extraordinary general meeting in February.

At the meeting, Vision also proposed a resolution which would have resulted in the company or its assets being sold over the coming years. However, all of Vision's board nominees and resolutions were defeated by approximately 60% on each vote.

In a statement, the Ires board said under the terms of this new co-operation agreement it will recommend that shareholders approve the appointment of Richard Nesbitt and Amy Freedman, both of which are nominated by Vision, at its forthcoming annual general meeting (AGM) which is scheduled for May 2.

As a result of the agreement, Vision has withdrawn its resolutions for the AGM which sought three board seats in addition to the reimbursement.

For its part, Vision will vote in favour of the board’s recommended resolutions at general meetings of the company from the date of the agreement until after the company’s 2025 AGM.

It has also agreed a standstill on initiating or participating in any further shareholder activist campaigns during that period.

Chair of the Ires board, Hugh Scott-Barrett, said this agreement allows the board to fully focus on the ongoing strategic review which is exploring all options available to maximise value for shareholders.

Chief executive of Vision Capital, Jeff Olin, said he is pleased with the two appointments and they “look forward to the outcome of the strategic review and the maximisation of the value inherent in Ires for all shareholders”.

Ires is the largest private landlord in the country. It owns 3,734 apartments most of which are located in Dublin aside from a 50-unit block in Harty’s Quay in Cork.

The company recently announced that Eddie Byrne, a 20 year-veteran of the Irish property sector and most recently a joint managing partner at Quintain Developments Ireland, will take over as chief executive from Margaret Sweeney who is retiring.

Mr Byrne will take up the role as chief executive designate on April 8 and will take over from Ms Sweeney on May 1.