Ires Reit, the Dublin-listed apartments owner under pressure from an activist investor to put itself up for sale or be broken up, has tapped existing board member Hugh Scott-Barrett to become its next chairman. This appointment comes as the company plans to carry out its own strategic review of options for the business.
The largest private residential landlord in the State said the appointment came as existing chairman Declan Moylan had previously announced that he would not be seeking re-election at the company’s annual general meeting in May.
Mr Scott-Barrett, a former chief executive of UK specialist property real-estate investment trust (reit) Capital & Regional, joined the board as an independent director in September 2022.
The appointment provides continuity for the company as it plans to carry out a strategic review as it seeks to ward off an attempted boardroom coup by Canadian activist investor Vision Capital, which is pushing for a sale or break-up of the company. It comes at a time when Ires’s chief executive, Margaret Sweeney, is planning to step down in three months’ time.
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Mr Scott-Barrett, who is currently on the board of London-listed Commercial Property Trust and also previously worked for Swiss-based GAM Investments and Dutch bank ABN Amro, plans to oversee the company review, which will be launched at the end of February, after Ires reports 2023 results.
“The swift appointment might also lead to some speculation that the selection of an existing [independent director] to act as chair was a rushed decision to put someone ‘in situ’ given Vision’s latest move, albeit Scott-Barrett clearly has a strong pedigree so we would be sceptical of any such arguments,” said John Cronin, an analyst with Goodbody Stockbrokers.
“The appointment of Scott-Barrett should provide some comfort to shareholders that the company will have the benefit of a chair with deep board and governance as well as property experience – albeit, apart from his experience at Ires, his property market experience appears to be in overseas markets.”
Ires insisted its strategic review, which will look at a number of options, would be “better than” the predetermined plan being “forced by” Vision. An extraordinary general meeting will be held on February 16th for investors to vote on Vision’s aim to replace five board directors, including Mr Moylan and Ms Sweeney, with candidates it has put forward. Vision also proposes that the company be sold or broken up within 24 months of the meeting.
The alternative company-led review would weigh “new strategic initiatives, consolidation, combination, merger or other corporate action, a review of the company’s status as a listed Reit, the sale of the entire issued share capital of the company and selling the company’s assets and returning capital to shareholders”, Ires said on Monday.
Joan Garahy, senior independent director at Ires, said the incoming chairman “will provide the right mix of board, real-estate and business skills and experience and has a deep understanding of our commitment to serve all our shareholders”.
Mr Scott-Barrett said: “Ires is an outstanding business and plays a key role in the Irish housing market. I am committed to leading and delivering the strategic review to look at all options to maximise value for all shareholders.”
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