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- Custodian REIT announces step down in management fee
Custodian REIT has announced amendments to the terms of its Investment Management Agreement (IMA) with its fund manager, Custodian Capital Limited (a subsidiary of Mattioli Woods plc). The amendments follow the expiry of the IMA’s initial three year term. Custodian REIT says that, in light of the positive performance of the Company since admission to trading on the London Stock Exchange in 2014, the Board has agreed a further three year term with 12 months’ notice to the Investment Manager’s ongoing engagement, from 1 June 2017.
Fees payable to the Investment Manager under the IMA have been amended to include:
The Board considers these amendments to the IMA to be in the best interests of the Company’s shareholders because:
David Hunter, Chairman of Custodian REIT, says that, “The Board has been delighted with the performance of the Investment Manager since Admission, particularly the timely deployment of new monies on high quality assets, securing the earnings required to fully cover target dividends. The revised IMA terms secure an immediate cost reduction for shareholders and will provide further economies of scale should NAV growth continue.”
Custodian REIT plc is a UK real estate investment trust, which listed on the main market of the London Stock Exchange on 26 March 2014. Its portfolio comprises properties predominantly let to what it describes as institutional grade tenants on long leases throughout the UK. It says that the portfolio is characterised by properties with individual values of less than £10 million at acquisition. The Company says that it offers investors the opportunity to access a diversified portfolio of UK commercial real estate through a closed-ended fund. By targeting sub £10 million lot size, regional properties, the Company says that it intends to provide investors with an attractive level of income with the potential for capital growth. Custodian Capital Limited is the discretionary investment manager of the Company.
Custodian REIT announces step down in management fee : CREI