11th Nov 2019 10:31
(Alliance News) - Macau Property Opportunities Fund Ltd on Monday said it has reached an agreement with the investment manager to restructure the investment management fees.
The Guernsey-headquartered investment trust said the current on-going management fee will be reduced to 1% from 2% of the adjusted net asset value for 2020 and will be reduced to zero for 2021.
A realisation fee, meanwhile, will be payable on deals originated and secured by the investment manager in 2020 and 2021, which will be linked to the sales price achieved.
Additionally, in the event that divestments of all of the assets are secured by the investment manager prior to the end of 2020, an extra incentive fee equal to 1% of the net proceeds of the assets will be payable.
The time period for securing the realisation of all assets in order for the investment manager to qualify for the extra incentive fee may be extended for a further six months period, Macau noted, subject to the satisfaction of certain conditions.
The extra incentive fee is designed to reinforce the focus on achieving the sales of all of the assets in 2020, the company explained.
The revised fee structure, which is subject to the resolution being passed at the company's annual meeting, which will be held on November 29, will formally take effect from the beginning of 2020.
Macau shares were trading 4.2% lower on Monday in London at 114.00 pence each.
By Evelina Grecenko; [email protected]
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