The rate Prestbury costs for controlling Safe Revenue REIT is to be lowered to reflect an boost in its surplus funds, subsequent a £347m portfolio sale.
Past August, the corporation bought a portfolio of 8 non-public hospitals permit to Ramsay Wellbeing Care to Health-related Properties Have faith in for £347m.
The offer left Safe Revenue REIT with surplus funds of £158m, which Prestbury think ought to be retained “whilst the nature of Brexit is settled and the management group continue their look for to supply worth accretive deals”.
Prestbury thus approached Safe Revenue REIT’s impartial directors to propose cutting the management rate to the levels that would be payable if the funds ended up returned to shareholders. This is equal to £1.2m a calendar year.
The directors have approved the proposal and the reduction in the rate will choose effect soon.
Safe Revenue REIT chairman Martin Moore said: “The management group is the company’s next most significant shareholder and so is exceptionally carefully aligned with all shareholders. They take into consideration that they ought to not profit from temporarily acting as managers of the company’s unusually significant funds harmony.”