An activist investor in New York REIT is submitting a proposal to manage thecompany, arguing that its plan would save more than $50 million over the REIT'scurrent external management agreement.
Michael Ashner and Steven Witkoff, the co-owners of WWInvestors, said in a letter to the REIT's chairman that they support theboard's decision to approve a plan of liquidation. Yet they criticized thehiring of a searchfirm to recruit new company directors, arguing that the board should be givinggreater consideration to WW Investors' own nominees.
Ashner and Witkoff said they aim to minimize "excessiveadvisory fees paid to the Schorsch cabal" — a reference to NicholasSchorsch, whose AR Global Investments LLC manages the company's sponsor. Towardthat end, they said, WW Investors will be responding to the REIT's for proposals to serveas its new manager, under "significantly better" terms—"approximately $50 million plus, to be more precise."
"Unlike the current advisor, our team has a stronghistory of creating stockholder value through REIT asset liquidations andsales, including four successful liquidations of publically traded REITs andthe sale of a fifth one," they wrote. "We are confident that if afair process is conducted, we will easily emerge the winner."