AR Global Terminated as Advisor to New York REIT
New York REIT Inc. (NYSE: NYRT), a former non-traded real estate investment trust known as American Realty Capital New York Recovery REIT, is terminating its advisory agreement with New York Recovery Advisors LLC, effective December 26th. The advisor is managed by AR Global Investments, the successor business to AR Capital.
The agreement expires on December 26th and automatically renews unless terminated with 60 days’ written notice. The advisor will not receive any payments or fees relating to the termination.
New York REIT said that it is currently evaluating 14 management proposals it received after issuing a request for proposals for all interested, qualified parties to serve as its external manager. New York Recovery Advisors submitted a proposal, but the REIT has not yet made a decision whether it will enter into a new advisory agreement with the advisor or another party.
The board recently approved a plan to dissolve and liquidate the company, upon shareholder approval, after terminating its proposed merger with JBG Companies.
As reported by The DI Wire yesterday, New York REIT entered into a settlement agreement with dissident investors Michael Ashner, Steven Witkoff, and their jointly owned entity, WW Investors LLC. The company agreed to expand its board of directors to include James Hoffmann, Gregory Hughes and Craig Bouchard as new independent directors and will also opt out of the Maryland Unsolicited Takeover Act. As part of the deal, WW Investors agreed to vote its shares in support of NYRT’s slate of nine director nominees at the company’s 2016 annual meeting of stockholders.
NYRT is a publicly traded real estate investment trust that owns 19 commercial real estate properties, including office and retail properties, located in New York City. Shares of NYRT closed at $9.67 on Tuesday.
