Alpha Real Trust Limited Extension of Management Agreement (2345P)
October 15 2021 - 3:10AM
UK Regulatory
TIDMARTL
RNS Number : 2345P
Alpha Real Trust Limited
15 October 2021
LEI: 213800BMY95CP6CYXK69
15 October 2021
ALPHA REAL TRUST LIMITED ("ALPHA REAL TRUST", "ART" OR THE
"COMPANY")
EXTENSION OF MANAGEMENT AGREEMENT
Alpha Real Trust announces that it has extended its management
agreement with its Investment Manager, Alpha Real Capital LLP, for
a term of five years expiring on 21 December 2027.
The key terms of the management agreement are as follows:
The Company and the Investment Manager have extended the current
management agreement for a further term of five years from the
expiry of the current term on 21 December 2022 pursuant to which
the Company appoints the Investment Manager to provide advisory
services to the Company and potentially other members of its
corporate group.
The Company believes this will provide the Company's
shareholders with greater certainty going forward on the continued
access to the management resources, and broader group support, of
the Investment Manager which will assist the Company to continue to
achieve its investment objectives.
The annual management fee and performance fee arrangements
remain unchanged. The Company will continue to pay a management fee
of 2% of the Company's Net Asset Value per annum to the Investment
Manager on a quarterly basis. In addition, the Investment Manager
is entitled to an annual performance fee calculated by reference to
the total shareholder return, whereby the fee is 20% of any excess
over an annualised total shareholder return of 15% subject to a
rolling 3 year high water mark. The latter is calculated by
reference to the Company's share price at the end of the relevant
accounting period, plus any dividends paid to shareholders and
returns of capital received by shareholders during that period.
ART targets investment, development, financing and other
opportunities in real estate, real estate operating companies and
securities, real estate services, infrastructure, infrastructure
services, other asset backed businesses and related operations and
services businesses that offer attractive risk-adjusted total
returns. ART currently focusses on asset-backed lending, debt
investments and high return property investments in Western Europe
that are capable of delivering strong risk adjusted cash flows.
The portfolio mix at 30 June 2021, excluding sundry
assets/liabilities, was as follows:
30 June 2021 31 March 2021
High return debt 28.2% 26.1%
High return equity in property
investments 20.0% 19.5%
Other investments 4.4% 0.5%
Cash 47.4% 53.9%
After a strategic pause to evaluate how the effects of the
economic shock from Covid-19 unfolded, new senior and mezzanine
lending has recommenced. Growth of the loan portfolio remains a key
focus for ART and is expected to attract a larger allocation of
capital for new investments.
For further information please contact:
Alpha Real Trust Limited
William Simpson , Chairman, Alpha Real Trust +44 (0) 1481 742 742
Brad Bauman, Joint Fund Manager, Alpha Real Trust +44 (0) 20 7391 4700
Panmure Gordon, Broker to the Company
Atholl Tweedie +44 (0) 20 7886 2500
Further information on the Company can be found on the Company's
website: www.alpharealtrustlimited.com .
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END
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