TIDMAIRE
RNS Number : 1238N
Alternative Income REIT PLC
18 May 2020
18 May 2020
Alternative Income REIT PLC
(the " Company " or " Group ")
APPOINTMENT OF M7 REAL ESTATE LIMITED AS INVESTMENT ADVISER
The Board of Directors of Alternative Income REIT PLC (ticker:
AIRE), the owner of a diversified portfolio of 19 UK commercial
property assets let on long leases, is pleased to announce that it
has appointed M7 Real Estate Limited ("M7"), a leading specialist
in the pan-European, regional, multi-let real estate market, as the
Company's Investment Adviser.
During the period between now and 31 March 2021, M7 will
undertake a review of each of the Group's assets and the Company's
investment policy, with a view to the Company entering into a
longer term agreement for M7's services with effect from 1 April
2021. U ntil 31 March 2021, t he agreement is terminable by the
Company at any time without notice.
The appointment is effective from 14 May 2020 and M7 will
provide the Company with advice, support and 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 have delegated authority to act within defined
parameters and where decisions outside pre-approved criteria are
required, specific approval will be agreed with the Company. M7
will work with the Group's service providers, whose details were
set out in the Company's announcement of 25 February 2020.
The Board believes that the appointment of M7 will improve the
Company's performance and enhance the appeal of the Company over
the long term. With the expertise and resources provided by M7, the
aim is to achieve a narrowing of the Company's discount and, in
time, attract new investors.
The Board believes that the appointment of M7 will provide the
Company with access to :
-- M7's experienced and well-resourced team
o M7 is a leading specialist in the pan-European, regional,
multi-let real estate market. Majority owned by its senior
managers, it has over 200 employees in 14 countries across Europe,
including 120 in the UK. The team manages over 830 properties with
a value of circa EUR5 billion. M7's clients include some of the
world's largest real estate investors such as Blackstone, Oaktree,
H.I.G. Capital and Starwood Capital.
-- M7's strong track record (2)
o M7 has a value oriented investment philosophy combined with an
active, hands-on asset management platform. The in-house, on the
ground, real estate experience available to the business through
its pan-European platform together with its market leading
information and data management systems, ensure that M7 can
maximise value. M7 has achieved an average geared internal rate of
return of 22.6 per cent. per annum since the company was founded in
2009, after fees, costs and expenses, for the UK investment
vehicles it has fully exited.
-- M7's proprietary data and market leading information and data management systems
o M7 utilises the "Coyote" information and data management
system, which it developed in-house and subsequently commercialised
in 2018. M7 has used the Coyote system to track individual
properties or portfolios of properties from introduction to
acquisition (or rejection) for over a decade, allowing it to
collect proprietary data on more than 15,000 assets across the UK
and Europe, with a total asset value of approximately GBP31
billion. This databank is constantly expanding and provides M7 with
excellent market insight, as well as an extensive pipeline of
assets, which are highly advantageous in the sourcing, selecting
and leasing of assets.
Fees
M7 will be paid a n annual fee of 0.5% of the Company's net
asset value paid quarterly in advance, subject to a minimum fee of
GBP90,000 per quarter from 1 October 2020. Until 1 October 2020,
there is no fee payable.
Steve Smith, Chairman of Alternative Income REIT PLC ,
commented:
"The Board welcomes the appointment of M7 who will work with the
Group's recently appointed service providers to achieve best value
for our shareholders. 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
."
Richard Croft, Chairman of M7 Real Estate added:
"To be appointed by the Board of the Alternative Income REIT PLC
is a hugely positive endorsement of the M7 Real Estate platform,
allowing us to utilise not only our core asset management skills,
where we have a strong track record of value creation, but also our
wider strategic investment, fund and debt advisory expertise. We
now look forward to focussing these services on the Company and its
portfolio in order to create value for its shareholders. "
ENQUIRIES
Alternative Income REIT PLC
Steve Smith - Chairman via Maitland/AMO below
-------------------------------
Maitland/AMO (Communications
Adviser)
-------------------------------
James Benjamin james.benjamin@maitland.co.uk
+44(0) 20 7379 5151
-------------------------------
Cenkos
-------------------------------
Will Rogers wrogers@cenkos.com
+44(0) 20 7397 1920
-------------------------------
Rob Naylor rnaylor@cenkos.com
+44(0) 20 7397 1922
-------------------------------
F TI Consulting (for M7 Real
Estate)
-------------------------------
Richard Sunderland M7RealEstate@fticonsulting.com
+44(0) 20 3727 1489
-------------------------------
The Company's LEI is 213800MPBIJS12Q88F71.
Further information on Alternative Income REIT PLC is available
at www.alternativeincomereit.com (1)
About the Group
Alternative Income REIT PLC aims to generate a sustainable,
secure and attractive income return for shareholders from a
diversified portfolio of UK property investments, predominately in
alternative and specialist sectors. The majority of the assets in
the Group's portfolio are let on long leases which contain
inflation linked rent review provisions, which help to underpin
income distributions to shareholders with the potential for income
and capital growth.
Notes
1 Neither the content of the Company's website, nor the content
of any website accessible from hyperlinks on its website or any
other website, is incorporated into, or forms part of, this
announcement nor, unless previously published on a Regulatory
Information Service, should any such content be relied upon in
reaching a decision as to whether or not to acquire, continue to
hold, or dispose of, securities in the Company.
2 Past performance is no guarantee of future returns.
About M7
M7 is a leading specialist in the pan-European, regional,
multi-let real estate market. Majority owned by its senior
managers, it has over 200 employees in 14 countries across Europe.
The team manages over 830 properties with a value of circa EUR5
billion.
M7 identifies value add investment opportunities for investors
in the smaller, multi-let sector. This sector is often neglected
and considered inefficient due to the small individual lot sizes
and the management intensive nature of the underlying assets. M7
typically aggregates numerous individual assets to form larger
portfolios with income levels and yields above market averages.
M7 has a value oriented investment philosophy combined with an
active, hands-on asset management platform. The in-house, on the
ground, real estate experience available to the business through
its pan-European platform together with its market leading
information and data management systems, ensure that M7 can
maximise value.
M7 was established in 2009 and initially focused on the
multi-let industrial sector within the UK, with a key focus on
efficient and accurate data management. A number of JVs were
created to capitalise on the opportunities available following the
global financial crisis. In addition, a workout business was
launched to help lenders manage higher yielding secondary
assets.
The development of the Continental European multi-sector
platform was started in 2013 with the objective of providing real
estate owners and investors with a first class, European asset
management platform. M7's senior management team had previously
built such platforms and was able to leverage this experience to
create successful operations in the UK, Croatia, the Czech
Republic, Denmark, Finland, France, Germany, Hungary, Ireland,
Luxembourg, the Netherlands, Poland, Portugal and Spain.
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contact rns@lseg.com or visit www.rns.com.
END
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