REG - Achilles Invest. Co. - Responds to Urban Logistics REIT PLC

Achilles Investment CoAnnouncement

27/03/2025 07:15

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RNS Number : 3975C  Achilles Investment Company Limited  27 March 2025

27 March 2025

Achilles Investment Company Limited

Responds to Urban Logistics REIT PLC's Latest Announcement

Achilles Investment Company Limited ("Achilles") acknowledges the recent
announcements from Urban Logistics REIT PLC ("Urban Logistics" or the
"Company") on 7, 12, 20 and most recently, 26 March 2025.

Proposed Internalisation

On 7 March, the Board proposed terms for internalisation. By 12 March, they
claimed that "a significant majority of shareholders spoken to were
supportive." However, by 26 March, they had suddenly discovered "a number of
constructive suggestions" necessitating revisions. Achilles awaits the
inevitable reworked proposal, which will undoubtedly be far less generous to
the investment manager.

The Board's belated recognition of the excessive price proposed for the buyout
of the management contract only reinforces our belief that the Board are too
closely aligned with the investment manager.

M1 Agency LLP ("M1")

The Board insists that its relationship with M1 is entirely appropriate, an
impressive level of confidence given the substantial fees involved. They now
acknowledge that Richard Moffitt agreed in September 2024 to step away from
M1, ceasing any role in the business or entitlement to its profits after 30
September 2024. Yet, this crucial fact, six months on, is only now being
disclosed.

Achilles appreciates the Board's newfound commitment to transparency. Notably,
Achilles only became aware of the potential disposal, which was announced
after challenging one of the Company's financial advisers on the potential
unacceptability of the arrangement.

A Board in Reverse Gear

Should the requisitioning investors succeed, the expectation is clear: the new
directors will work constructively and collaborate with the remaining Board
members to conduct a thorough strategic review focused on enhancing
shareholder value. Such that, if a third party approaches the Board with a
proposal, Sangita Shah and Robert Naylor, if elected, will ensure it is
presented to shareholders in a timely manner, prioritising the interests of
the Company's owners over those of the investment manager.

Robert Naylor, Lead Investment Manager of Achilles, commented:

"It appears that the Board is backpedalling as quickly as possible.
Shareholders are clearly expressing genuine concern as to the governance of
Urban Logistics, and it's time for a fresh perspective to examine the
relationship between the investment manager and the Board."

Sangita Shah commented:

"I would be honoured if the shareholders elect me to the Board of Urban
Logistics. The government has made it clear that managers must demonstrate
fair value for investors, and I will work diligently to ensure that this is
the case if I am elected"

Sangita Shah

Sangita Shah has extensive experience in corporate finance, governance
journalism and senior consultancy. She is the non-executive Chair of AIM
traded Kinovoplc, SID of Inspired plc and NASDAQ listed Forward Industries
Inc. She also presides on the board of the Quoted Companies Alliance. She has
held a number of senior roles within blue chip organisations, including
Unilever, Mars, Ernst & Young and KPMG and is a past President of the
Chartered Institute of Journalists. Sangita is also a regular consultant to a
number of companies and to HM Cabinet Office. Sangita is a qualified
accountant and a frequent keynote speaker in forums for the Windsor Leadership
Trust, European Parliament and European School of Management.

Enquiries

 Robert Naylor and Christopher Mills  020 7640 3200

                                      info@harwoodcapital.co.uk

 

 

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