REG - Schroder Real Estate - Publication of circular and notice of EGM

Schroder Real Estate Investment TrustAnnouncement

21/11/2023 07:00

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RNS Number : 0598U  Schroder Real Estate Inv Trst Ld  21 November 2023

Proposed amendments to the Company's investment objective and policy, and the
Investment Management Agreement

Schroder Real Estate Investment Trust Limited (the "Company") has today
published a circular (the "Circular") proposing amendments to the Company's
investment objective and policy, and to the Company's investment management
agreement (the "Proposals").

The purpose of the proposed changes to the Company's investment objective and
policy is to formally include sustainability at the centre of the Company's
investment proposition, with a sustainability improvement and decarbonisation
strategy focused on adapting existing buildings into those that are both
modern and fit for purpose.  This should also enable the Company to
proactively respond to the UK's Net Zero Carbon objectives, whilst optimising
portfolio performance to seek enhanced total returns for shareholders. The
strategic evolution represents the culmination of views from the Board, the
Company's investment manager, Schroder Real Estate Investment Management
Limited (the "Manager") and advisors, as well as feedback from shareholders.

Accordingly, the Circular proposes amendments to the Company's investment
objective and policy that reflect the strategy outlined above. As well as
providing further details of the Proposals, the circular includes a notice of
an extraordinary general meeting to be held at 10.00 am on 15 December 2023 at
1 London Wall Place, London, EC2Y 5AU (the "EGM") at which shareholders will
be asked to vote on a resolution to approve the proposed changes to the
Company's investment objective and policy (the "Resolution").

To align the Manager's compensation with the delivery of the specified
sustainability objectives, the Board and the Manager have agreed to make
certain amendments to the Manager's existing investment management agreement
with the Company (the "IMA") - a 5 basis points increase or decrease in the
management fee depending on sustainability and income related KPIs being
achieved.

In recognition of the work undertaken by the Manager in the design and
implementation of this formalisation of sustainability objectives, the Board
has also agreed to amend the term of the IMA, to be terminated on not less
than 12 months' notice, such notice not to expire prior to the second
anniversary of the passing of the Resolution. The proposed IMA changes are
disclosed in the Circular and are conditional on the passing of the
Resolution. The Manager is a related party of the Company for the purpose of
the Listing Rules. Based on the amounts involved, the changes to the IMA
constitute a smaller related party transaction as set out in Listing Rule
11.1.10R.

The Manager will be presenting the strategic evolution to both new and
prospective shareholders in advance of the EGM, at which the Board and Manager
hope the proposed changes will be approved.

An electronic copy of the circular will shortly be available to download from
the Company's website www.srei.co.uk (http://www.srei.co.uk)

The Company has submitted a pdf of the circular to the National Storage
Mechanism. It will shortly be available for inspection
at  https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) .

 

For further information:

 

 Schroder Real Estate Investment Management Limited:     020 7658 6000

Nick Montgomery / Bradley Biggins / Matthew Riley
 FTI Consulting:                                         020 3727 1000

 Dido Laurimore / Richard Gotla / Ollie Parsons

 

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