1 Mar 2021
Alternative Income REIT – extension of M7’s Investment Advisory Agreement
The Board of Directors of Alternative Income REIT plc (the “Company” or the “Group”), the owner of a diversified portfolio of UK commercial property assets predominantly let on long leases is pleased to announce that it has agreed a revised Investment Advisory Agreement (“IAA”) with M7 Real Estate Limited (“M7”), the Company’s Investment Adviser.
Under the revised IAA, which is effective from 1 April 2021, M7 will provide the Company with investment advice, fund accounting and administration services, including strategy, debt advisory, reporting, fund accounting and investment advisory services together with asset management, operational advice, budgeting and planning for the Group’s portfolio.
M7 will be paid an annual fee of 0.5% of the Company’s net asset value paid quarterly in advance, subject to a minimum fee of £90,000 per quarter.
Following discussions with the Company’s largest shareholders, the Board considered and approved the revised IAA as being in the best interests of shareholders, providing the Company with certainty and a cost-effective service under the terms of the existing agreement with M7, the term of which ends on 31 March 2021, as announced on 18 May 2020. The revised IAA is subject to a six month notice period, following the first six month period.