TIDMEBOX TIDMBOXE
RNS Number : 9525B
Tritax EuroBox PLC
06 October 2022
06 October 2022
PROPOSED AMENDMENT TO INVESTMENT MANAGEMENT AGREEMENT
Tritax EuroBox plc (the "Company"), which invests in
high-quality, prime logistics real estate strategically located
across continental Europe, announces that it is proposing to amend
its Investment Management Agreement ("IMA") with Tritax Management
LLP (the "Manager") to support its long-term strategic
objectives.
The key changes proposed are:
-- A reduction in the base management fee to 1.00% on Net Asset
Value ("NAV") up to EUR 1 bn and 0.75% on NAV above EUR1 bn.
(1)
-- Property management services procured by the Manager will now
be contracted directly with the Company and, hence, fees relating
to such services will be paid by the Company. (2)
-- Based on the last reported NAV at 31 March 2022, the proposed
changes would result in a net c.EUR2.4mn reduction in the annual
costs to the Company.
-- The proposed fee would be back-dated becoming effective from 1 August 2022.
-- The Manager will continue to apply 10% of the management fee
to the purchase of Company shares, which the Manager is restricted
from selling for 12 months following their purchase.
-- The provision of ESG services now enshrined in the IMA.
-- A new 18-month fixed term effective from the date of the
General Meeting after which the Company would have a two-year
rolling notice.
The Manager is a related party of the Company under Chapter 11
of the FCA's Listing Rules and the proposed amendments to the term
of the IMA constitute a smaller related party transaction under
Listing Rule 11.1.10R. The information in this announcement is
being notified pursuant to Listing Rule 11.1.10(c)R.
Whilst the Company is not required to obtain Shareholder
approval in relation to the proposed amendments, it is giving
Shareholders the opportunity to approve them as a matter of good
corporate governance. Therefore, the proposed amendments to the IMA
are conditional upon the approval of Shareholders at a general
meeting. A circular related to the changes is expected to be
published on or around 7 October 2022 which will contain further
details on the General Meeting.
Robert Orr, Chairman of the Company, commented:
"We have worked closely with the Manager to identify ways to
both reduce costs and to ensure that we have the skills and
resources in place to deliver returns to our shareholders over the
long term. The proposed amendments to the IMA are intended to
achieve this through a reduction in the Manager's fee, as well as
providing additional security to the Company through greater
contractual certainty with the Manager.
The Board believes the revised IMA supports the delivery of the
Company's strategic objectives and is in the best interests of
shareholders."
Phil Redding, Fund Manager of the Company, commented:
"The amendments to the IMA will help deliver our key short term
priorities of reducing costs and providing for a covered dividend.
The portfolio remains in great shape based on its high-quality
assets with strong ESG credentials and inbuilt inflation
protection. The business is underpinned by a strong financial
position with no debt refinancing needed before 2025 and a low cost
of debt either fixed or capped.
Investment markets have weakened recently, largely due to
European interest rates increasing in response to inflation.
However, occupational markets remain strong, with rental growth
continuing to be generated across our markets.
I am excited to be taking the business forward, optimising the
portfolio and driving further income growth."
(1) Revised Fee Structure
CURRENT PROPOSED
Basic NAV Annual Basic NAV Annual
Management Management
Fee Fee
(% of Basic NAV) (% of Basic NAV)
---------------------------- --------------------------- -----------------------------
Up to and Up to and
including including
EUR500mn 1.30% EUR1bn 1.00%
---------------------------- --------------------------- -----------------------------
Above EUR500mn
and up to and
including
EUR2bn 1.15% Above EUR1bn 0.75%
---------------------------- --------------------------- -----------------------------
Above EUR2bn 1.00%
---------------------------- --------------------------- -----------------------------
(2) An element of the property management fee is not recoverable
from the tenants. These fees currently total c. EUR 450,000 per
annum (0.04% of NAV).
For further information please contact:
Tritax Group
+44 (0) 20 8051 5070
Phil Redding
Mehdi Bourassi
Jo Blackshaw (Investor Relations)
Barclays Bank plc (Joint Corporate Broker and Financial
Adviser)
+44 (0)20 7623 2323
Andrew Tusa
Bronson Albery
Edouard Asselin
Jefferies International Limited (Joint Corporate Broker and
Financial Adviser)
+44 (0) 20 7029 8000
Ed Matthews
Gaudi Le Roux
Akur Limited (Joint Financial Adviser)
+44 (0) 20 7493 3631
Anthony Richardson
Siobhan Sergeant
Kekst CNC (Media enquiries)
Neil Maitland/Tom Climie
07971 578 507 / 07760 160 248
tritax@kekstcnc.com
The Company's LEI is: 213800HK59N7H979QU33.
Notes:
Tritax EuroBox plc invests in and manages a diversified
portfolio of well-located Continental European logistics real
estate assets that are expected to deliver an attractive capital
return and secure income to shareholders. These assets fulfil key
roles in the logistics and distribution supply-chain focused on the
most established logistics markets and on the major population
centres across core Continental European countries.
The Company's Manager, Tritax Management LLP, has assembled a
full-service European logistics asset management capability
including specialist "on the ground" asset and property managers
with strong market standings in the Continental European logistics
sector.
Further information on Tritax EuroBox plc is available at
www.tritaxeurobox.co.uk
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