NEW YORK, Jan. 30, 2014
/PRNewswire/ -- Corvex Management LP and Related Fund
Management, LLC, whose separately managed investment funds
collectively own approximately 9.6% of the outstanding shares of
CommonWealth REIT (NSYE:CWH), today released an investor
presentation in connection with their consent solicitation.
The presentation outlines:
- The clear rationale and path for the removal of the entire
CommonWealth Board as a result of the abysmal performance of CWH by
almost any metric over any relevant time period, 28 years of poor
governance practices, and the Trustees' desperate attempts during
the last year to muzzle CommonWealth's shareholders.
- The financial analysis underpinning the belief that the removal
of the Trustees will unlock substantial value for shareholders:
- CWH's current net asset value (NAV)[1]
would be approximately $35 per share,
50% higher than the closing price on January
29, 2014; and
- CWH could be valued at approximately $40 per share by end of 2015.
- A turnaround and governance plan designed to enhance
shareholder value by:
- Electing a new Board consisting solely of truly independent
Trustees;
- Establishing best-in-class corporate governance to impose
accountability;
- Internalizing management and aligning management compensation
with shareholder returns;
- Implementing improved operating strategies to "right the
ship";
- Removing the poison pill;
- Ceasing all acquisition activity and dilutive capital raises
until stock price exceeds its NAV; and
- Ceasing all related party transactions not approved by a vote
of disinterested shareholders.
The presentation is available at
www.shareholdersforcommonwealth.com.
Corvex and Related urge shareholders to vote the GOLD
consent card and remove the entire Board of CommonWealth. If
shareholders have any questions or require any assistance in
executing their consent, they can call D.F.
King & Co., Inc., at 1-800-714-3313.
About Corvex Management LP
Corvex Management LP is an investment firm headquartered in
New York, New York that engages in
value-based investing across the capital structure in situations
with identifiable catalysts. Corvex was founded in March 2011 and follows an opportunistic approach
to investing with a specific focus on equity investments, special
situations and distressed securities largely in North America.
About Related Fund Management LLC
Related Fund Management, LLC is an affiliate of Related
Companies, one of the most prominent privately-owned real estate
firms in the United States. Formed
40 years ago, Related is a fully integrated, highly diversified
industry leader with experience in virtually every aspect of
development, acquisitions, management, finance, marketing and
sales. Related's existing portfolio of real estate assets, valued
at over $15 billion, is made up of
best-in-class mixed-use, residential, retail, office and affordable
properties. For more information about Related Companies please
visit www.related.com.
Additional Information Regarding the Solicitation
Corvex Management LP and Related Fund Management, LLC have filed
a definitive solicitation statement with the Securities and
Exchange Commission (the "SEC") to (1) solicit consents to
remove the entire board of trustees of CommonWealth REIT (the
"Removal Proposal"), and (2) elect five new trustees at a
special meeting of shareholders that must be promptly called in the
event that the Removal Proposal is successful. Investors
and security holders are urged to read the definitive solicitation
statement and other relevant documents because they contain
important information regarding the solicitation. The
definitive solicitation statement and all other relevant documents
are available, free of charge, on the SEC's website
at www.sec.gov.
Neither the issuance of this press release nor the filing
thereof with the SEC, shall be deemed to be a request by Corvex or
Related or any other shareholder of the Company for the Company to
set a record date for the consent solicitation. In accordance with
the Arbitration Panel's November 18 Interim Award, Corvex and
Related will submit a request for a record date for the consent
solicitation to the Company by February 16, 2014.
For further information, contact:
Rupal Doshi
Corvex
(212) 474-6750
rdoshi@corvexcap.com
Joanna Rose
Related
(212) 801-3902
jrose@related.com
INVESTORS:
Edward McCarthy / Richard Grubaugh
D.F. King & Co., Inc.
(212) 269-5550
[1] Represents estimate of private market value of all
properties owned by CWH disclosed in 10-Q filing at 9/30/13,
adjusted for recent asset sales reported in the media. Our
NAV estimates reflect various assumptions concerning anticipated
results that are inherently subject to significant uncertainties
and contingencies. We urge you to review our full
presentation at www.shareholdersforcommonwealth.com because it
contains important information about our analysis and
assumptions. Corvex and Related have not been given access to
non-public information held by the Company in connection with
arriving at these estimates.
SOURCE Related Companies