Chairman of AR Global’s Healthcare Trust Resigns
Healthcare Trust Inc., a publicly registered non-traded real estate investment trust sponsored by AR Global (the successor business to AR Capital), announced that chairman Randolph Read has resigned from the board of directors, as well various committees on which he served. Board member Leslie Michelson will succeed him as non-executive chairman, the company said.
Read, who also serves as the chairman of AR Global’s New York REIT (NYSE: NYRT), said that he resigned from Healthcare Trust to focus his “full attention” on executing NYRT’s recently proposed plan of liquidation.
According to a filing with the Securities and Exchange Commission, Healthcare Trust entered into a consulting agreement with International Capital Markets Group where Read serves as president. ICMG will provide strategic consulting services through Read “at reasonably convenient times,” and will be paid $38,000 on October 21st, $25,000 on November 21st, and $25,000 on December 31st for the services.
Read commented, “With the conclusion of the strategic review process at Healthcare Trust, this is the ideal time for me to pass the baton at HTI as they focus on building a world class healthcare REIT in the medical office building and seniors housing sectors.”
Healthcare Trust completed its strategic review last week and said that it will continue to execute its business plan and focus on managing and strengthening its assets instead of selling its properties or entering into a strategic combination with another company. Following the review, founding member of AR Capital, William Kahane, resigned from the board of directors, with AR Global CEO Edward Weil, Jr. stepping in to serve in his place.
Following Read’s resignation from Healthcare Trust, his only formal role in the REIT industry will be as New York REIT’s board chairman. New York REIT recently decided to liquidate the company following a wave of criticism over their now terminated merger proposal with JBG Companies. This week, The DI Wire reported the firm received 14 management proposals to replace AR Global as its external advisor.
Healthcare Trust, which invests in multi-tenant medical office buildings, owns an 8.4 million-square-foot portfolio of 164 properties located in 29 states. The company’s primary offering went effective in February 2013 and closed in November 2014 after raising $2.2 billion in investor equity.
