Invista Foundation Property Trust has signed an investment management agreement with Schroders, ahead of today’s “put up or shut up” deadline for suitor Picton Property Income Trust.
The appointment will take effect “upon certain conditions being satisfied”, including the receipt of all necessary consents from the company’s lenders – which can formally be sought once the investment management agreement has been signed.
These conditions also include the termination of its existing contract with Invista Real Estate Investment Management – which was given notice in March – and the recruitment of “certain individuals” from Invista, including former chief executive Duncan Owen.
Schroders will be paid a management fee of 1.1% pa of the company’s NAV of £168.4m, 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 proceeds.
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 a change in control of the company, in which case the notice period will be 12 months.
The new fee basis will result in annual cost savings of around £1.8m.
On 19 August 2011, the listed trust announced that it had received an approach from Picton with a view to a merger.
The deadline by which rival Picton must either announce a firm intention to make an offer for the company or walk away is 5pm today, 31 October 2011.
Invista said a further announcement with regard to the approach from Picton will be made as appropriate.
bridget.o’connell@estatesgazette.com
