19th May 2020 06:55
(Alliance News) - Alternative Income REIT PLC on Monday said it has appointed M7 Real Estate Ltd as investment adviser from Thursday last week.
During the period to the end of March 2021, the real estate investment trust said M7 will undertake a review of each of its assets and investment policy, with a view to Alternative Income REIT entering into a longer term agreement for M7's services with effect from April 2021.
Until then, the agreement is terminable by the company at any time without notice.
Alternative Income REIT said it believes that the appointment of M7 will improve its performance, with the aim to achieve a narrowing of the company's discount and, in time, attract new investors.
The company said it will pay an annual fee to M7 of 0.5% of its net asset value, paid quarterly in advance, subject to a minimum fee of GBP90,000 per quarter from October. Until then, there is no fee payable.
"We look forward to working closely with such an experienced and well-resourced team with an excellent track record of delivering strong returns to investors. The aim will be to extend M7's contract in the spring of next year if not before," said Alternative Income REIT Chair Steve Smith.
Alternative Income REIT shares closed 1.1% lower in London on Monday at 50.50 pence each.
By Evelina Grecenko; [email protected]
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