RM Secured Lending cuts management fee – the fee has been adjusted so that the manager is entitled to a fee of:
a) 0.875 per cent. of the prevailing Net Asset Value (“NAV”) in the event that the prevailing NAV is up to or equal to £250 million; or
b) 0.800 per cent. of the prevailing NAV in the event that the prevailing NAV is above £250 million but less than £500 million; or
c) 0.750 per cent. of the prevailing NAV in the event that the prevailing NAV is above £500 million.
This compares to a previous management fee calculated at the rate of 0.875 per cent. of the prevailing NAV, or in the event that the prevailing NAV was less than £75 million, a fee calculated at the rate of 0.50 per cent. per annum of the prevailing NAV.
In addition, the term of the management agreement has been extended. Initially subject to 12 months’ notice, provided such notice could not be given earlier than the third anniversary of the initial admission of RMDL’s shares to trading (which took place on 15 December 2016). Following the amendment, the appointment is subject to 12 months’ notice provided such notice cannot be given earlier than 1 April 2023.
At least 10% (or £10,000 whichever is the greater) of the fee must be used to buy shares in RM Secured Lending,
[Once again, (see Target Healthcare REIT) a manager has obtained a significant extension to its notice period. RMDL’s board argues that it likes the manager – let’s hope that this remains the case otherwise shareholders will be burden with a very expensive exit fee.]
RMDL : RM Secured Lending cuts management fee