Custodian Property Income REIT has changed the investment management agreement with Custodian Capital, its investment manager, as part of a push to win shareholder support for its planned merger with Abrdn Property Income Trust in the face of a rival move from Urban Logistics.
The REIT said the changes would be “to the benefit of all shareholders of the combined group” and involve the removal of an extension to the term of Custodian Capital’s appointment, so that after the merger Custodian Capital’s appointment can be terminated on 12 months’ written notice.
Custodian Capital will also waive its one-off £350,000 project fee in connection with its work on merger, and will waive its management fee in relation to the NAV attributable to API for the first nine months following completion of the deal. There will also be a reduction in the management fees payable by the REIT for two years.
“The CREI board believes these additional amendments to the terms of the amended and restated investment management agreement reinforce the financial rationale of the recommended merger and represents further alignment between CREI, Custodian Capital and the shareholders of the combined group,” Custodian said.
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