The chairman of scandal-hit Home REIT, Lynne Fennah, has been replaced by Big Yellow Group director Michael O’Donnell.
Fennah will remain on the board as a non-executive director for “continuity”. The remaining directors of Home REIT’s board will all step down when the company publishes its financial results (still no date for this).
Fennah and the board had overseen a disastrous period for the company that saw its former investment manager Alvarium acquire properties that have turned out to be in various state of disrepair. Last week a new valuation of the portfolio revealed a 57.7% fall in the value of the properties versus the amount paid for them by the company. Investigations into the conduct of the previous manager are ongoing.
For obvious reasons, the board had come under fire from shareholders for their lack of oversight that allowed this to happen.
O’Donnell succeeds Fennah as chairman with immediate effect. He is currently a non-executive director and chairs the remuneration committee of Big Yellow Group Plc, the FTSE 250 self-storage company, having been a member of its board since September 2021.
He was previously a non-executive director and chair of the remuneration committee at Helical plc (between 2011 and 2019). With a background in private equity and complex restructuring situations, he has chaired numerous businesses in challenging circumstances, several of which have had a significant real estate element.
He also has experience in the social care and wider healthcare services sectors, including as chair of Cygnet Health Care (2013-2014), one of the UK’s leading providers of mental healthcare services, overseeing the eventual sale of the business.
Comments
Fennah said: “I recognise and share investors’ frustration at the events which have unfolded over the last 14 months and the deterioration in the performance of the company. With a new investment manager in place and the stabilisation of the company’s portfolio and financial position ongoing, now is the right time to step aside. Michael brings extensive restructuring, public company and sector experience together with a strong conviction in taking the business forward.”
O’Donnell added: “Home REIT continues to face challenges but progress on critical workstreams is now well underway, with the publication of the audited results a key priority. I am committed to protecting the interests of all Home REIT’s stakeholders and look forward to meeting with them over the coming months.”
HOME : Home REIT replaces chairman