H&R Real Estate Investment Trust and activist hedge fund activist investor K2 & Associates Investment Management Inc have called a truce and agreed on the appointment of two new directors to the REIT’s board, neither of whom were on K2’s proposed slate, according to a report by The Globe and Mail.
Just three weeks after the Toronto-based hedge fund nominated four board candidates, the two parties have reached a compromise, with Lindsay Brand, a former real estate banker and former executive at property developer Dream Unlimited, and Leonard Abramsky, a commercial real estate veteran who is also on the boards of First Capital REIT and Dream Residential REIT, now set to be named as directors.
The truce is similar to the conclusion of a proxy fight at First Capital REIT earlier this year when, following attempts by multiple activist investors to have candidates named as directors, two new different board appointments were finally made.
