Spring Reit asset manager says it will prevail at upcoming unit holder meeting
Toshihiro Toyoshima, chairman of Spring Asset Management says it has the needed support of unit holders to quash replacement motion to be heard at November 10 extraordinary general meeting
The asset management team at Spring Reit says it has the support from a majority of unit holders to quash an upcoming motion on whether it should be replaced, drawing battle lines with an investment manager calling for changes that include replacing the existing manager and improving the governance structure.
Hong Kong-based alternative investment manager PAG, which owns about 12.4 per cent of the reit, has led a campaign to replace the manager, citing what it says is the reit’s underperformance relative to peers, poor decision making, conflicts of interest and lack of a growth strategy.
Toshihiro Toyoshima, chairman of Spring Asset Management, told the South China Morning Post that it had acted in the best interest of unit holders and enjoyed widespread support.
“We have secured written confirmations from certain unit holders with more than 50 per cent of voting rights to support the existing manager,” said Toyoshima, ahead of the exceptional general meeting on November 10 on whether the reit should replace the asset manager.
Toyoshima said he did not agree with the claims made by PAG, but acknowledged the unit holder has the right to express concerns.