11th Apr 2019 13:54
LONDON (Alliance News) - Ground Rents Income Fund PLC has appointed Schroder Real Estate Investment Management Ltd as its new investment manager, it said Thursday.
Ground Rents' former manager, Brooks Macdonald Funds Ltd, is stepping back to focus on its core offerings.
However, the Brooks Macdonald staff working with Ground Rents will be moving to Schroders, with James Agar continuing to act as the head of its investment management team.
Schroders has been appointed for three years, and the termination period is one year.
Ground Rents has agreed a "simplified" fee structure linked to net asset value, it said, and it will now pay Schroders 1% of net asset value per year up to GBP200 million, then 0.9% up to GBP400 million, and 0.8% above that.
Ground Rents Chair Malcolm Naish commented: "Ground Rents Income Fund's diversified portfolio of ground rents provides long-term, stable income with high inflation-linkage which is differentiated from other Schroders' real estate products.
"We recognise the regulatory challenges that face the industry, but believe we have the platform to support the existing team to continue to be a best-in-class operator in the leasehold sector as evidenced by their commitment to the public pledge for leaseholders."
"Furthermore, the residential sector is a growing part of the institutional real estate market and the appointment fits well with Schroders' broader real estate strategy to be closer to our assets," he continued.
Shares were 1.4% lower on Thursday at a price of 95.90 pence each.
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