UK Commercial Property cuts management fee

Reduced Investment Management Fees

The board  has benchmarked the company’s fees against the market. As a result, a reduced management fee arrangement has been agreed with AberdeenStandard. As from 1 January 2019, the management fee will be calculated as follows:

• 0.60% on gross assets up to GBP1.75billion
• 0.475% on gross assets over GBP1.75billion

This compares to the current management fee of 0.65% on gross assets plus GBP 100,000 administration fee. Based on the current quarter end’s gross assets this equates to a fee decrease of GBP839,000 per annum.

Andrew Wilson, the chairman, commented: “It has been another active period for UKCP REIT with the Group’s portfolio continuing to perform well and the successful conversion to a REIT taking effect at the start of July. In line with our strategy, we have crystallised value for our shareholders through the sale of 1 Rivergate in Bristol and recycled the capital into a high quality office asset, which will add materially to the Group’s income stream. We enter the second half of the year with a good momentum and are well placed to continue to unlock value and grow income across our diverse portfolio.”

Will Fulton, lead manager, said: “During the period we have successfully grown the group’s income both through net investment into an asset with good potential for income growth, while also delivering on our active asset management strategy, letting up space across the portfolio and agreeing leases at rents ahead of ERVs. The agreement of a new long lease at Ventura Park was a significant achievement as we continue to identify active asset management opportunities across our portfolio, in particular across our industrial assets, to grow future income and capital 
returns.”

UKCM : UK Commercial Property cuts management fee