Arkhouse Partners nominates directors to Preferred Apartment Communities board -sources

Reuters

BOSTON – Investment firm Arkhouse Partners is seeking to take control of real estate investment company Preferred Apartment Communities’ board and nominated five directors, two sources familiar with the matter said on Friday.

Arkhouse is aiming to oust the majority of Preferred Apartment Communities’ eight board members, the sources said, adding the nominations have been made privately.

The size and timing of Arkhouse’s investment in Preferred Apartment Communities could not be determined.


Preferred Apartment Communities, which is valued at $927 million, has been working with bankers and a real estate company to divest some of its properties. Earlier in the year, it sold a portfolio of seven office properties and one office real estate loan investment.

Its share price has climbed 147% in 2021 and was trading at $18.18 late on Friday.

A representative for the company was not immediately available for comment.

Arkhouse Partners, based in New York, did not immediately respond to a request for comment.

Earlier in 2021, the investment firm nominated a control slate and made an unsuccessful bid at Columbia Property Trust while owning around 1% of the company. It then withdrew its slate before the annual meeting.

Activist investors have been picking up the pace in the last months of trying to push companies to make changes, including selling off divisions or overhauling their management teams.

(Reporting by Svea Herbst-Bayliss; Editing by Chris Reese)

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