Supermarket Income REIT PLC Amendment To Advisory Arrangements (2849F)
July 15 2021 - 2:00AM
UK Regulatory
TIDMSUPR
RNS Number : 2849F
Supermarket Income REIT PLC
15 July 2021
SUPERMARKET INCOME REIT PLC
(the "Company")
LEI: 2138007FOINJKAM7L537
AMENDMENT TO ADVISORY ARRANGEMENTS
Supermarket Income REIT plc (LSE: SUPR), the real estate
investment trust providing secure, inflation-protected, long income
from grocery property in the UK, is pleased to announce amendments
to the Company's existing Investment Advisory and Accounting and
Administration Services Agreement (the "IAA").
Amendment to Investment Advisory Fee
Under the existing agreement, Atrato Capital Limited (the
"Investment Adviser") is entitled to both a monthly advisory fee
and a semi-annual fee, which operate at the following levels based
upon the Net Asset Value of the Company. Pursuant to the revised
investment advisory agreement (the "Revised IAA"), an additional
fee level of 0.4% on Net Asset Value in excess of GBP2.0 billion is
being introduced. The introduction of this additional tier
demonstrates the desire to grow to a multi-billion pound company
and aims to ensure that shareholders benefit from economies of
scale as the Company grows.
The fee structure with the new additional tier is set out
below:
Net Asset Value Monthly fee Semi Annual Blended fee
fee
----------------------------- ------------ ------------ ------------
Up to GBP500m 0.7125% 0.2375% 0.95%
----------------------------- ------------ ------------ ------------
Between GBP500m & GBP1.0bn 0.5625% 0.1875% 0.75%
----------------------------- ------------ ------------ ------------
Between GBP1bn & GBP1.5bn 0.4875% 0.1625% 0.65%
----------------------------- ------------ ------------ ------------
Between GBP1.5bn & GBP2.0bn 0.3375% 0.1125% 0.45%
----------------------------- ------------ ------------ ------------
Above GBP2.0bn 0.3250% 0.0750% 0.40%
----------------------------- ------------ ------------ ------------
Initial Term and Termination arrangements
The existing agreement has a fixed initial term of five years,
which is due to expire in July 2022 having commenced on 21 July
2017. In the event that written notice to terminate is not served
by the Company or the Investment Adviser prior to the end of the
initial term, the IAA would continue in force for recurring
12-month periods.
The Revised IAA provides certainty for the Company by securing
the services of the Investment Adviser and key members of their
team by extending the required notice period to two years. The new
Agreement is effective from 1 July 2022 and the Company has waived
its right to terminate the existing agreement until this date.
Furthermore, the Company has secured a reduction to the
investment advisory fees through the introduction of the additional
fee level.
The Revised IAA also increases the minimum notice period for
termination of the Accounting and Administration services, from six
months to 12 months.
The Investment Adviser is a related party of the Company under
Chapter 11 of the FCA's Listing Rules and the amendments to the IAA
constitute a smaller related party transaction under Listing Rule
11.1.10.
FOR FURTHER INFORMATION
Atrato Capital Limited +44 (0)20 3790 8087
Ben Green / Steve Windsor / ir@atratocapital.com
Steve Noble
Stifel Nicolaus Europe Limited +44 (0)20 7710 7600
Mark Young / Matt Blawat
FTI Consulting +44 (0)20 3727 1000
Dido Laurimore / Eve Kirmatzis SupermarketIncomeREIT@fticonsulting.com
/ Andrew Davis
NOTES TO EDITORS:
Supermarket Income REIT plc (LSE: SUPR) is a real estate
investment trust dedicated to investing in grocery properties which
are an essential part of the UK's feed the nation infrastructure.
The Company focuses on grocery stores which are omnichannel,
fulfilling online and in-person sales. All of the Company's 55
supermarkets(1) are let to leading UK supermarket operators,
diversified by both tenant and geography.
The Company provides investors with attractive, long-dated,
secure, inflation-linked, growing income with the potential for
capital appreciation over the longer term and targets a 7% to 10%
p.a. total shareholder return over the medium term(2) . The Company
has increased its dividend target in line with UK RPI inflation
each year.
The Company's ordinary shares were admitted to trading on the
Main Market of the London Stock Exchange, Specialist Fund Segment,
on 21 July 2017.
Atrato Capital Limited is the Company's Investment Adviser.
Further information is available on the Company's website
www.supermarketincomereit.com
(1) As at 24(th) May, 29 directly owned supermarkets, plus 26 via joint venture
(2) There is no certainty that these illustrative projections will be achieved
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