Urban Logistics Reit Faces Shareholder Push for Leadership Change

The chairman and manager of Urban Logistics Reit, a significant player in the UK warehouse sector, are under increasing pressure as veteran investors seek their ousting. A group of shareholders, led by Christopher Mills and Robert Naylor, is demanding that shareholders be allowed to vote on the removal of both Nigel Rich, the chairman, and Richard Moffitt, the chief executive of the fund management company.

Urban Logistics, which boasts a portfolio valued at £1.1 billion comprising inner-city warehouses rented to prominent clients like DHL, has received a requisition notice requesting a shareholder meeting to vote on these leadership changes. Mills and Naylor, who recently orchestrated a major sale in the investment realm, now own 8.8 percent of Urban Logistics’ shares, giving them a notable stake in the ongoing situation.

In their correspondence with Urban Logistics, the duo expressed discontent with the current management structure and raised concerns about the corporate relationships involving Moffitt and M1, a property agency where he is a partner. The investors have urged for an assessment of the existing arrangements to ensure they yield appropriate value for shareholders.

The board of Urban Logistics is anticipated to recommend a vote against Achilles’ proposed changes. Recent discussions between Urban Logistics and its shareholders touched on the potential internalisation of the management team, which could reportedly save the company approximately £1.4 million annually. However, this move would require compensating Logistics Asset Management a hefty £12.4 million in shares, raising questions about the financial implications of such a decision.

Urban Logistics’ shares have been trading at a notable discount of 16 percent relative to their net asset value, intensifying the scrutiny on management’s strategies moving forward. Amidst these developments, shareholders are eager to explore options to maximise and return value, including the possibilities of external interests in acquiring the company.

The unfolding scenario highlights the complex dynamics within Urban Logistics and the increasing activism from shareholders eager to secure their investments in a challenging market environment.