(Alliance News) - Irish Residential Properties REIT PLC on Monday said it will soon commence a strategic review, and that Vision Capital Corp will "seek to take control" of the board at a requisitioned emergency general meeting.

The Dublin-based real estate investment trust said that at the request of Vision, which has about a 5% stake, the EGM will be held on February 16.

The private rental accommodation provider said that at the EGM, Vision will propose resolutions seeking to remove five of the board's nine existing directors and replace them with nominees proposed by Vision. The resolutions also seek a shareholder direction to appoint an advisor with a view to selling Irish Residential or its assets, or to liquidating the company, within the next 24 months.

Irish Residential urged shareholders to vote against Vision's resolutions, saying that they "seek to take control of the company" and that the existing board is "best placed to steward [its] future".

As for Vision's attempt to "force [its] total liquidity", Irish Residential said: "The board believes this seriously risks the value inherent in the assets and the platform of I-Res in forcing a risky and potentially value destructive approach that, while it might be in the interests of Vision, is not in the interests of shareholders as a whole.

"Your independent, experienced board understand the desire of certain shareholders to achieve near term liquidity, but this must be balanced against the interests of all shareholders."

Irish Residential on Monday said it intends to commence a strategic review "as soon as practicable" during the first quarter of 2024, to consider all available options to "maximise and unlock value for shareholders".

It said the options under consideration will include actions such as consolidation or mergers, a review of its status as a listed REIT, and selling either its assets or its entire issued share capital.

Irish Residential expects to have "more flexibility" in its strategic options going into 2024, due to "early signs" that this year "may see moderating inflation, improved interest rate expectations and greater financial market stability".

"This follows a period in which external macro factors have resulted in challenging conditions in the real estate sector which the board believes have led to the current I-Res share price and discount to NAV failing to reflect [its] underlying value," the company added.

"As we undertake this review, the company remains fully focused on continuing to deliver our strong operational and financial performance, as well as our market leading services to all of our residents in seeking to deliver value and establish alignment across our shareholders," commented Chair Declan Moylan.

Shares in Irish Residential Properties were up 1.0% at EUR1.06 each on Monday morning in Frankfurt.

By Emma Curzon, Alliance News reporter

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