Lar Espana Real Estate has extended the investment management agreement (IMA) with Grupo Lar by five years on a reduced fee.
The board of directors of the company, which owns retail malls in Spain and listed on the Madrid Stock Exchange in 2014, has agreed to renew the IMA with a new fee structure.
The investment manager will be paid a fixed base fee of 0.62% of the net asset value (NAV). The current base fee agreement, which expires on 31 December 2021, was the higher of 1.00% of NAV below €1bn and 0.75% of NAV over €1bn or €2bn per annum.
The annual performance fee has also been reduced to 8% (currently 16%) of NAV shareholder return outperformance in excess of 10% of EPRA NAV at the end of the previous year; and 2% (currently 4%) of market capitalisation outperformance in excess of 10% of the market cap at the end of the previous year.
The performance fee will be capped at 1.5 times (currently 3 times) the annual base fee.
LRE : Lar Espana extends investment management agreement on reduced fee