REG - Home REIT PLC - Revisions to Investment Management Arrangement

Home ReitAnnouncement

22/08/2025 07:00

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RNS Number : 3196W  Home REIT PLC  22 August 2025

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22 August 2025

Home REIT plc

("HOME" or the "Company")

Revisions to Investment Management Arrangement

The Board of HOME REIT plc today announces that it has agreed with its
investment manager, AEW UK Investment Management LLP ("AEW"), to revise the
terms of its investment management agreement ("IMA") with the Company,
reflecting the reduced size of the Company and the anticipated trajectory of
the managed wind-down.

AEW was appointed as investment manager on 21 August 2023 for a fixed term of
two years. Following expiry of the fixed term on 22 August 2025, under the
original IMA, AEW was entitled to receive an investment management fee equal
to 0.75% of net asset value per annum on an ongoing basis, subject to a
minimum fee of £3 million per annum (increasing annually in line with
inflation by the lower of RPI, CPI and 5% per annum from 21 August 2023).

Ahead of the expiry of the fixed term on 22 August 2025, the Board and AEW
have agreed a revised agreement aligned to the Company's managed wind-down
strategy and ongoing sale process.

Under the revised IMA, which is effective from 22 August 2025, AEW is entitled
to a revised fee structure as follows:

·    £167,000 per month to expire three months after the date on which
the Company holds fewer than 10 properties.

·    Thereafter, £120,000 per month for a period of three months.

·    Thereafter, £42,000 per month until termination of the revised IMA.

·    Subject to an aggregate annual cap of £1 million, 10% of gross rent
collected from assets owned by the Company and 10% of rent arrears collected,
including those recovered through liquidations.

The revised IMA may be terminated on six months' written notice and occur no
earlier than 21 August 2026. The revised IMA includes other immaterial
amendments.

The Company's unrestricted cash together with rental income are expected to be
sufficient to fund the Company's operational expenses and fees during the
managed wind-down.

Michael O'Donnell, Non-executive Chairman of the Company, commented: "The
expiry of the Company's fixed-term IMA with AEW represented an opportunity to
better align AEW's fee structure with the Company's managed wind-down strategy
and ongoing sale process. The revised IMA reflects these priorities,
preserving the incentive to recover rent arrears and optimise the performance
of the portfolio whilst also unlocking significant potential cost savings as
the sale process progresses. I would like to take this opportunity to thank
AEW for their hard work and I expect our close working relationship to
continue as the managed wind-down progresses."

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

 FTI Consulting (Communications Adviser)  HomeREIT@fticonsulting.com (mailto:HomeREIT@fticonsulting.com)

 Dido Laurimore                           +44 (0)20 3727 1000

 Bryn Woodward

 Oliver Harrison

 

The Company's LEI is: 213800A53AOVH3FCGG44.

 

For more information, please visit the Company's website: www.homereituk.com
(http://www.homereituk.com/)

 

 

 

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