Custodian REIT PLC Amendment to Investment Management Agreement (9392G)
June 02 2017 - 2:00AM
UK Regulatory
TIDMCREI
RNS Number : 9392G
Custodian REIT PLC
02 June 2017
2 June 2017
Custodian REIT plc
("Custodian REIT" or "the Company")
Amendment to Investment Management Agreement
Custodian REIT (LSE: CREI), the UK commercial real estate
investment company, announces that the terms of its Investment
Management Agreement ("IMA") with its external discretionary fund
manager, Custodian Capital Limited ("the Investment Manager"), a
subsidiary of Mattioli Woods plc, have been amended following
expiry of the IMA's initial three year term.
In light of the positive performance of the Company since
admission to trading on the London Stock Exchange in 2014
("Admission"), the Board has agreed a further three year term with
12 months' notice to the Investment Manager's ongoing engagement,
from 1 June 2017. Fees payable to the Investment Manager under the
IMA have been amended to include:
-- A step down in the property management fee from 0.75% to
0.65% of net asset value ("NAV") applied to NAV in excess of GBP500
million; and
-- A step down in the administrative fee from 0.125% to 0.08% of
NAV applied to NAV between GBP200 million and GBP500 million and a
further step down to 0.05% of NAV applied to NAV in excess of
GBP500 million.
All other key terms of the IMA remain unchanged.
The Board considers these amendments to the IMA to be in the
best interests of the Company's shareholders because:
-- The administrative fee will fall immediately, increasing
cover on target dividends for the year ending 31 March 2018;
-- Further growth in NAV, particularly above GBP500 million,
will further reduce the Company's ongoing charges ratio and
increase dividend capacity; and
-- Another three year term provides the Investment Manager with
security of tenure and allows further investment in the dedicated
systems and people providing its services under the IMA.
For the purposes of the Listing Rules, the Investment Manager is
a related party of the Company and the amendments to the IMA fall
within Listing Rule 11.1.10 R, thus not requiring a shareholder
vote.
David Hunter, Chairman of Custodian REIT, commented:
"The Board has been delighted with the performance of the
Investment Manager since Admission, particularly the timely
deployment of new monies on high quality assets, securing the
earnings required to fully cover target dividends. The revised IMA
terms secure an immediate cost reduction for shareholders and will
provide further economies of scale should NAV growth continue."
- Ends -
For further information, please contact:
Custodian Capital Limited
Richard Shepherd-Cross / Nathan Imlach Tel: +44 (0)116 240 8740
/ Ian Mattioli MBE
www.custodiancapital.com
Numis Securities Limited
Nathan Brown / Hugh Jonathan Tel: +44 (0)20 7260 1000
www.numiscorp.com
Camarco
Ed Gascoigne-Pees Tel: +44 (0)20 3757 4984
www.camarco.co.uk
Notes to Editors
Custodian REIT plc is a UK real estate investment trust, which
listed on the main market of the London Stock Exchange on 26 March
2014. Its portfolio comprises properties predominantly let to
institutional grade tenants on long leases throughout the UK and is
characterised by properties with individual values of less than
GBP10 million at acquisition.
The Company offers investors the opportunity to access a
diversified portfolio of UK commercial real estate through a
closed-ended fund. By targeting sub GBP10 million lot size,
regional properties, the Company intends to provide investors with
an attractive level of income with the potential for capital
growth.
Custodian Capital Limited is the discretionary investment
manager of the Company.
For more information visit www.custodianreit.com and
www.custodiancapital.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
AGROKDDKDBKBPAK
(END) Dow Jones Newswires
June 02, 2017 02:00 ET (06:00 GMT)
Custodian Property Incom... (LSE:CREI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Custodian Property Incom... (LSE:CREI)
Historical Stock Chart
From Jul 2023 to Jul 2024