Workspace (WKP) non-executive director David Stevenson looks vulnerable ahead of the real estate investment trust’s (REIT) annual general meeting on 23 July after proxy adviser Glass Lewis this week joined rival ISS in recommending shareholders vote against the investment columnist and publisher’s re-election to its board.
The entire WKP board is under threat as activist hedge fund Saba Capital, the largest shareholder with a 29.1% stake, seeks to replace its six non-execs with its own nominees and pursue a big share buyback programme funded by selective asset sales. It added to its position this week to take it ahead of property developer Nick Roditi who holds 29% through the Cayman Islands-based London & Amsterdam Trust.
Saba argues the Workspace’s board lacks “meaningful” real estate experience although the chair, Duncan Owen, is a former global head of real estate at Schroders with a 35-year track record in investment.
In a report on 13 July Glass Lewis said the composition of Workspace’s board was not “optimal to deal with the complexities of the situation at hand” as the flexible office space provider strives to push ahead with a recovery programme under new chief executive Charlie Green. Glass Lewis recommends shareholders vote for one of Saba’s nominees, Richard Starr, a former Palace Capital (PCA) property director, instead of Stevenson.
Last week ISS recommended shareholders vote against Stevenson and Nick Mackenzie, a former chief executive of pub group Greene King, and elect two other Saba nominees, real estate consultants and advisers Gregory Attwood and Andrew Sim.
Stevenson, who has written for Citywire, Investment Week, MoneyWeek, Investors Chronicle and the Financial Times, is the founder of fintech news service AltFi and ETF Stream, and is also the senior independent director on the board of Gresham House Energy Storage (GRID).
Workspace’s other non-execs are: Rosie Shapland, a former PwC audit partner; Lesley-Ann Nash, a former Morgan Stanley managing director and UK Cabinet Office director; and Manju Malhotra, a former chief executive of retailer Harvey Nichols.
Saba’s other nominees are: former Quintain Estates deputy CEO Nick Shattock; REIT investor Gautam Garg; and former head of PwC’s UK real estate deals practice, Simon Hampton.
Workspace, which has criticised Saba’s plans as “flawed” and “high risk”, has urged shareholders to vote against all of Saba’s resolutions. The deadline for votes is 21 July.
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