TIDMPRSR
RNS Number : 2324M
PRS REIT PLC (The)
20 January 2021
20 January 2021
PRSR.L
The PRS REIT plc
("the Company" or "the PRS REIT")
Investment Advisory Agreement
The PRS REIT, the closed-ended real estate investment trust
which invests in high-quality, new build, family homes in the
private rented sector ("PRS"), is pleased to announce an extension
of its Investment Advisory Agreement ("IAA") and an amendment to
the calculation of asset management fees. These terms have been
agreed with Sigma PRS Management Limited, the Investment Adviser
("Investment Adviser") and the alternative investment fund manager,
G10 Capital Limited ("AIFM"), and take effect from 1 January
2021.
Extension of IAA
The IAA signed on 3 May 2017 provided for an initial minimum
contracted term of five years to 31 May 2022, being the fifth
anniversary of the initial admission of the Company's shares to
trading on the Specialist Fund Segment of the Main Market of the
London Stock Exchange. Under the new agreement, the contracted term
has been extended to 31 December 2025, with a one year notice
period thereafter.
Amendment to Asset Management Fee
The asset management fee payable to the Investment Adviser (the
"Asset Management Fee") has been revised such that the Company will
pay a reduced fee for Adjusted Net Asset Values* above GBP500
million.
For Adjusted Net Asset Values up to, and including, GBP500m, the
rates remain unchanged.
The Asset Management Fee remains payable monthly in arrears, and
the rates used to calculate the Asset Management Fee are as
follows:
(i) 1 per cent. per annum of the Adjusted Net Asset Value up to,
and including, GBP250 million, which is unchanged;
(ii) 0.90 per cent. per annum of the Adjusted Net Asset Value in
excess of GBP250 million and up to, and including, GBP500 million,
which is unchanged;
(iii) 0.75 per cent. per annum of the Adjusted Net Asset Value
in excess of GBP500 million and up to, and including, GBP1 billion,
which is revised - see below;
(iv) 0.50 per cent. per annum of the Adjusted Net Asset Value in
excess of GBP1 billion and up to, and including, GBP2 billion,
which is revised - see below; and
(v) 0.40 per cent. per annum of the Adjusted Net Asset Value in
excess of GBP2 billion, which is new.
The revised rates apply from 1 January 2021.
The Asset Management Fee was previously calculated at a rate of
0.80 per cent. per annum of the Adjusted Net Asset Value in excess
of GBP500 million and up to, and including, GBP1 billion, and 0.70
per cent. per annum of the Adjusted Net Asset Value in excess of
GBP1 billion.
Summary
These changes provide additional certainty regarding the
Company's arrangements with its Investment Adviser, and were
considered and approved by the Board following a consultation with
the Company's major shareholders as to the best interests of
shareholders. The Board firmly believes that its Investment Adviser
is uniquely well-placed to support the delivery of the Company's
strategy and investment objective, with the Company's
right-of-first-refusal on assets within Sigma's PRS property
platform, as expressed in the IAA, remaining central to the
Company's future success.
Save for the changes stated above, all other terms of the IAA
remain unchanged.
DEFINITIONS
*Adjusted Net Asset the Net Asset Value, less an amount equal to
Value the Development Cost incurred in relation to
the PRS Development Sites under construction
at the relevant time by the Company and its
subsidiaries, calculated in accordance with
the Investment Advisory Agreement
For further information, please contact:
The PRS REIT plc Tel: 020 3178 6378 (c/o
Steve Smith, Non-executive Chairman KTZ Communications)
Sigma PRS Management Limited Tel: 0333 999 9926
Graham Barnet, Mike McGill
N+1 Singer Tel: 020 7496 3000
James Maxwell, James Moat, Sebastian Burke
Panmure Gordon (UK) Limited Tel: 020 7886 2500
Chloe Ponsonby (Corporate Broking), Alex Collins
(Corporate Finance)
G10 Capital Limited (part of the IQEQ Group Tel: 020 3745 2826
as AIFM)
Paul Turner
KTZ Communications Tel: 020 3178 6378
Katie Tzouliadis, Dan Mahoney
NOTES TO EDITORS
About The PRS REIT plc
( www.theprsreit.com )
The PRS REIT plc is a closed-ended real estate investment trust
established to invest in the Private Rented Sector and to provide
shareholders with an attractive level of income together with the
potential for capital and income growth. The Company is investing
GBP0.9bn in a portfolio of high quality homes for private rental
across the regions, having raised a total of GBP500m (gross)
through its Initial Public Offering, on 31 May 2017, and a
subsequent placing in February 2018. Both fundraisings were
supported by the UK Government's Homes England with direct
investments.
LEI: 21380037Q91HU97WZX58
About Sigma Capital Group plc
www.sigmacapital.co.uk
Sigma Capital Group plc ("Sigma") is a PRS, residential
development, and urban regeneration specialist, with offices in
Edinburgh, Manchester and London. Sigma's principal focus is on the
delivery of large scale housing schemes for the private rented
sector. The Company has a well-established track record in
assisting with property related regeneration projects in the public
sector, acting as a bridge between the public and private
sectors.
Sigma has created an unrivalled PRS platform, which sources
sites and brings together construction resource to develop them,
enabling Sigma to deliver an integrated solution to partners. As
well as sourcing sites and managing all stages of the planning and
development process, Sigma also manages the rental of completed
homes through its award winning rental brand 'Simple Life'. The
Company's subsidiary, Sigma PRS Management Limited, is Investment
Adviser to The PRS REIT plc.
About Sigma PRS Management Limited
Sigma PRS Management Limited is a wholly-owned subsidiary of
AIM-quoted Sigma Capital Group plc and is Investment Adviser to The
PRS REIT plc. It sources investments and operationally manages the
assets of The PRS REIT plc and advises the Alternative Investment
Fund Manager ("AIFM") and The PRS REIT plc on a day-to-day basis in
accordance with The PRS REIT plc's Investment Policy. The
Investment Manager is G10 Capital Limited. Sigma PRS Management Ltd
is an appointed representative of G10 Capital Limited, which is
authorised and regulated by the Financial Conduct Authority
(FRN:648953).
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