Appointment of new Investment Manager (1072R)
October 31 2011 - 3:00AM
UK Regulatory
TIDMIFD
RNS Number : 1072R
Invista Foundation Property Tst Ltd
31 October 2011
Invista Foundation Property Trust Limited
Appointment of new Investment Manager
In March 2011, the Board of Invista Foundation Property Trust
(the "Company") announced that it had given notice to Invista Real
Estate Investment Management Limited ("IREIM") of the termination
of its investment management agreement.
Following that announcement, the Board conducted an extensive
review of the options open to the Company, culminating in a
competitive process in which a number of parties were invited to
make proposals to the Board. The Board then invited a selected
number of parties to make presentations in person.
On 17 August, the Board entered into a Heads of Agreement under
which it would, subject to finalising the necessary documentation
and the receipt of any necessary approvals, appoint Schroder
Property Investment Management Limited ("Schroders") to manage the
Company's portfolio.
The Board confirms that the Investment Management Agreement (the
"IMA") with Schroders has today been signed, with the appointment
of Schroders to manage the Company's portfolio due to take effect
upon certain conditions being satisfied. These include the receipt
of all necessary consents from the Company's lenders (which can
formally be sought once the IMA has been signed), the termination
of the existing contract with IREIM and the recruitment by
Schroders of certain individuals currently employed by IREIM who
have been directly involved with the management of the Company's
portfolio in the past and who are therefore familiar with the key
asset management initiatives which are under way.
Schroders will be paid a management fee of 1.1% per annum of the
Company's Net Asset Value, with effect from the point at which the
conditions mentioned above have been satisfied, and will provide
both management and accounting services to the Company. The IMA
will not be subject to a notice period or termination fee in the
event that a merger with Picton Property Income Limited ("Picton")
proceeds (see below). If this merger does not proceed, the contract
with Schroders will be subject to a notice period of nine months,
except in certain circumstances such as in the event of a change of
control of the Company, in which case the notice period will be 12
months. The new fee basis will result in annual cost savings for
the Company of approximately GBP1.8 million.
On 19 August 2011, the Company announced that it had received an
approach from Picton with a view to a merger. The deadline by which
Picton must either announce a firm intention to make an offer for
the Company including the terms of that offer in accordance with
Rule 2.7 of the Code or announce that it does not intend to make an
offer, in which case the announcement will be treated as a
statement to which Rule 2.8 of the Code applies, is 5.00 p.m.
today, 31 October 2011.
A further announcement with regard to the approach from Picton
will be made as appropriate.
- ends -
For further information, please contact:
Numis Securities Limited Tel: 020 7260 1000
Heraclis Economides
David Benda
Hugh Jonathan
FTI Consulting Tel: 020 7831 3113
Stephanie Highett
Richard Sunderland
Olivia Goodall
This information is provided by RNS
The company news service from the London Stock Exchange
END
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