In QuotedData’s morning briefing 20 January 2021 –
- SME Credit Realisation Fund has announced a return of capital by way of a compulsory share redemption. £25m will be handed back by buying back approximately 18.0% of shares in issue at 84.77p per share (the NAV at the end of December 2020). holders of shares on 27 January will get their money on 5 February or thereabouts.
- PRS REIT has given its manager a longer guaranteed tenure in exchange for a slightly lower management fee. Under the old deal the manager could have been given one year’s notice on 31 May 2022. Now that cannot be done until 31 December 2025. The fee cut is 0.75% instead of 0.8% on the NAV between £500m and £1bn, 0.50% instead of 0.70% on amounts between £1bn and £2bn, and 0.40% instead of 0.70% on amounts above £2bn. The current NAV is about £460m so the change makes no difference for now. [This is an odd move by the PRS REIT board. We like PRS REIT and think the manager has done a good job. As we have tried to stress before, nobody wants to replace their manager unless they have performed poorly or done something unforgiveable. In those situations, you want shot of them as quickly and cheaply as possible. Long initial notice periods are acceptable to give the manager a chance to recoup their IPO costs. A few years after launch, notice periods should be shorter – six months is fairly common.]