Changes to Investment Managem

RNS Number : 1801D

Invista Foundation Property Tst Ltd

27 November 2009

 



27 November 2009

Invista Foundation Property Trust Limited 

(the 'Company' / 'Group')

CHANGES TO INVESTMENT MANAGEMENT FEE

Invista Foundation Property Trust Limited today announces a change to its investment and asset management base fee arrangement with Invista Real Estate Investment Management Limited (the 'Manager').  

The current base fee arrangement of 0.95% per annum of Gross Asset Value ('GAV') less current liabilities has been changed to a fee based on the Company's Net Asset Value ('NAV'), back-dated to 1 July 2009.  The current NAV linked performance fee arrangement will not change as part of the new base fee arrangement.   

The new fee arrangement will be payable monthly in arrears and will be equal to one twelfth of:

• 2% of NAV up to £150 million, plus

• 1.75% of NAV between £150 million and £200 million, plus

• 1.5% of NAV over £200 million 

This NAV based fee will be subject to a floor of £229,000 per month. In the event that this floor is breached, the fee will then revert to being calculated on the previous basis of 0.95% per annum of GAV, until NAV recovers to a point where the monthly NAV based fee would once again exceed £229,000. 

The combined new base fee and any performance fee based on the current arrangement cannot exceed 5% of the Company's total NAV during any financial year ending 31 March. 

Based on the 30 September 2009 NAV and GAV, the revised arrangement would generate an annualised reduction in the management fee paid by the Company of 22% or £804,000 per annum.  

A supplemental agreement to reflect the revised terms will be executed by the Company and the Manager shortly.  

Andrew Sykes, Chairman, commented:

"The new fee arrangement is part of a programme of measures that the Board and Invista are taking to control costs, whilst also aligning Invista's incentives as Manager even more closely with the interests of Shareholders." 

-ENDS-

For further information:

Invista Real Estate Investment Management Duncan Owen	020 7153 9300
Northern Trust David Sauvarin	01481 745529
Financial Dynamics Dido Laurimore / Rachel Drysdale	020 7831 3113

 

END

 

 

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