2nd Jul 2014 14:02
LONDON (Alliance News) - South African Property Opportunities PLC Wednesday said that it has appointed Bridgehead Real Estate (Pty) Ltd as its new investment manager, and has terminated its contract with Group Five Property Development (Pty) Ltd.
The new arrangements took effect at the start of July. South African Property Opportunities said it will pay a GBP175,000 fixed fee to Group Five Property Development every year. The new investment manager will also receive an incentive fee of 1.5% of the net proceeds received by the company when it sells an asset. The agreement can be terminated with six months' notice.
Under the previous investment management agreement, a fixed fee of GBO290,000 per year and an incentive fee of 1.5% of net proceeds was payable to Group Five.
South African Property Opportunities said that it has also entered into a termination deed with Group Five, under which it will pay Group Five a termination fee of ZAR1.4 million and, until January 1 2016, a fee of 0.5% of the net proceeds received by the company following the sale of an asset. This deal was made in the place of giving notice.
"As part of the new arrangements, and to help to ensure continuity, Bridgehead has recruited Simon Thirsk, the Group Five executive most closely involved with the Company's affairs. He will receive a material part of any sales commission," South African Property Opportunities said in a statement.
Bridgehead is managed by Craig McMurray, an executive director of South African Property Opportunities
"We have negotiated a contract that has a cost saving in terms of fixed fees and, by Simon Thirsk joining Bridgehead, have maintained continuity of personnel and of the disposal programme," Chairman David Hunter said in a statement.
By Samuel Agini; [email protected]; @samuelagini
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