Slate Office REIT has announced plans to manage its assets in-house after its external manager, Slate Management, initiated the termination of its management agreement with the REIT.

Along with this transition, trustees Blair Welch and Brady Welch have resigned from the REIT’s board, effective immediately. The Welches are the principals of SAM and Brady Welch serves as the company’s CEO.

SAM has provided 180 days’ notice, during which, the company said, it will work with the REIT to ensure a smooth transition of management services. Sam Altman, Chair of the Board of Trustees, stated that internalizing assset management will align better with unitholders and reduce costs for the REIT.

The moves follow a battle among the REIT’s board members and an ongoing effort to protect the REIT against insolvency.

Blair and Brady Welch have accused trustee George Armoyan of inappropriately bidding for the trust’s assets, the Globe and Mail reported previously. The accusations were made in a letter sent to other board members, according to the Globe.

Armoyan has denied the allegations in an e-mail to the Globe, contending that the REIT has badly underperformed its peers over the past decade while SAM has has collected $132 million in management fees.

The Nova Scotia-based investor told the Globe that SAM has overseen the destruction of hundreds of millions of dollars in unitholder value.

The REIT owns and operates high-quality office real estate across North America and Europe.

Photo: Slate Office REIT