(Bloomberg) —
Countryside Properties Plc Chief Executive Officer Iain McPherson is stepping down just as the U.K. homebuilder reaches an agreement with an activist investor.
The firm reached a deal with Browning West, that includes the appointment of partner Peter Lee to its board. The Los Angeles-based hedge fund has built a stake of almost 9.6% in Countryside and has pushed for a shake-up at the company. In exchange, the investor has agreed not to propose further resolutions at shareholder meetings, circulate statements or seek to remove other directors, according to a statement on Thursday.
“Iain McPherson has led Countryside through a challenging period, including the Covid pandemic and has clarified the group’s strategy, which is to focus all of our resources on our market-leading partnerships business,” chairman John Martin said in the statement.
Countryside has pivoted away from building homes for private sale to focus on its partnerships business that develops mainly low-cost housing for public bodies and affordable housing providers. Trading has been “below expectations” in the company’s first quarter the statement added, with profit and revenue hit by declining completions in both its private and partnerships units.
McPherson will step down with immediate effect.
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