Activist shareholder Sandpiper Group further increased its stake in Agellan Commercial Real Estate Investment Trust to 12% and launched legal proceedings against the REIT and its board of trustees.
In an Oct. 16 notice filed with the Ontario Superior Court, the activist is seeking a court order for Agellan and its board to convene a timely unit holder meeting in order to ensure all unit holders have a voice on the REIT's internalization plan. Agellan said earlier it will hold the meeting April 17, 2018, instead of the Nov. 7, 2017, date requested by Sandpiper.
In a release, Sandpiper CEO Samir Manji called the move an "unnecessary and unacceptable delay tactic" by Agellan's board to slip the proposed internalization through and stall the "inevitable change" that the shareholder group is seeking.
Sandpiper Asset Management Inc. also said in a release that the group is supported by more than 36% of the REIT's outstanding units in its quest for change.
Agellan did not respond to a request for comment by press time.