Appointment of new Investment Manager

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 £1.8 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 Heraclis Economides David Benda Hugh Jonathan	Tel: [phone]
FTI Consulting Stephanie Highett Richard Sunderland Olivia Goodall	Tel: [phone]

 

END

 

 

MSCFBLLXFBFLFBZ