SHB.L Share News (SHB)

(Sharecast News) - Property developer Shaftesbury reported some progress with its larger schemes at the start of its new financial year, but was later threatened with legal action by a dissatisfied major shareholder. Hong Kong billionaire Samuel Tak Lee, owner of 26% of the shares, gained some support from other shareholders as he attempted to halt the board from some proposed ad hoc fundraisings.Three motions were not carried at the annual general meeting: to authorise the directors to allot shares and to grant the directors authority to disapply pre-emption rights or to call a extraordinary general meeting on not less than 14 clear days' noticeJust over 31% of votes opposed the board the proposal to authorise directors to allot shares, while there was just under 30% opposition for the authority to disapply pre-emption rights.Tak Lee had also looked to vote out the company's chief executive, chief financial officer and chairman and oppose directors' pay packages, but these motions were all carried despite opposition from more than 29% of votes. "Unless Mr Lee gets a satisfactory response in relation to the concerns he has raised with the board, he will be left with no choice but to litigate," a statement read.Since 1 October, the group, which owns a swathe of shopping streets in London's West End, has sewn-up lettings, lease renewals and rent reviews with a rental value of £9.3m at rental levels at or above September estimated rental values.The total portfolio valuation increased 3.8% to £3.95bn with ERV up £9.5m to £154m. Vacancies at the end of December was 3.1%, of which 1.2% is under offer.Shopper footfall during weeks leading up to and including Christmas and New Year was "robust" and occupiers generally reported growth in turnover compared with the previous year, chief executive Brian Bickell said."In contrast to reports of subdued leisure spending nationally, our restaurants, cafes, pubs and bars were particularly busy throughout the festive period."However, while demand remains resilient for regular space, potential occupiers of larger rental commitments "continue to be cautious".Nevertheless, one major scheme was let out during the period, Thomas Neal's Warehouse, and a second at the nearby Central Cross now only has three shops still unlet.On the delayed purchase of a long leasehold interest in 90-104 Berwick Street for £41m, directors said they currently expect the vendor to complete the development by mid-2019.This acquisition, or more specifically the company's supposed lack of communication around it, is one of the issues why major shareholder Samuel Tak Lee has an axe to grind and called for shareholders to vote alongside him in blocking the board from ad-hoc fundraising.These issues have also led, it has been reported, Lee to plan to vote against the re-election of the chief executive, chief financial officer and chairman and oppose directors' pay packages.Numis analyst Robert Duncan said the hostility of some top shareholders stemmed from management sticking to their long-term approach amid a slowdown in ERV growth seen across the portfolio over the past few years and slow progress in leasing some of its major schemes.The AGM is being held at 1100 GMT at Ham Yard Hotel, 1 Ham Yard, London W1D 7DT.Shaftesbury shares were slightly lower in early trade on Friday, down 0.2% at 881p, having last month approached lows not seen since early 2015.Broker Peel Hunt said there was "very little new news", though analysts noted that a statement was released yesterday evening regarding press coverage that Tak Lee intends to vote against the directors' remuneration and re-appointment of chairman, CEO and FD."The shares trade on an 11% discount to NAV and a 2.0% dividend yield."Analysts at Liberum said: "We believe Shaftesbury's long-term prospects remain significant, given the benefits of its established scale and control over an exceptionally well positioned West End estate. The business has demonstrated positive progression in ERV and rents across cycles and we are confident this can continue."