Business
STRATEGIC REVIEW UPDATE
STRATEGIC REVIEW UPDATE.
About this update from Alina Holdings Plc
[{"type":"text","content":"\n \nRNS Number : 7595I Local Shopping REIT (The) PLC 08 July 2013 \n \n\n8 July 2013\nLocal Shopping REIT plc (\"LSR\" or the \"Company\")\n \nSTRATEGIC REVIEW UPDATE\nAppointment of new manager, proposed change of investment policy,\nclosure of Formal Sale Process and termination of Offer Period\n \nIntroduction\nThe Board of LSR announced on 12 November 2012 that, given the Company's rating, due in part to its size and capital structure, and the challenge of creating a scaleable business, it was in the interests of shareholders as a whole to review options open to the Company.\nThe committee of the Board (the \"Committee\") has considered several options including preserving the status quo, externalisation of the Company's management and certain corporate transactions. It has concluded that, due to the continuing challenges faced by the Company, a change of investment policy allowing the orderly liquidation of assets, the repayment of debt and the return of the remaining capital to shareholders over a period of time is in the best interests of all shareholders.\nAppointment of new manager\nThe Committee received several proposals from third party managers. Following a rigorous selection process the Board has appointed INTERNOS Global Investors Limited (\"INTERNOS\") as Investment Manager.\nINTERNOS currently has a total of £1.5 billion under management including six \"manager replacement\" mandates. The Board has appointed Steve Faber, an employee of INTERNOS, as a director of the Company; he is designated investment manager to LSR. Steve has extensive experience of UK property including at Tesco Stores, Land Securities Trillium and, most recently, at RREEF where he was Head of UK Asset Management and responsible for £2 billion of property with experience in many towns and cities in the UK.\nUnder the management agreement (the \"IMA\"), the Company has agreed to grant INTERNOS the following fees in respect of investment management, asset management, administration and ancillary services:\na) an Asset Management Fee of 0.70% of \"Gross Asset Value\" per annum calculated from the Effective Date, subject to certain minimum amounts;\nb) an Annual Performance Fee comprising 20% of recurring operating profits for each financial year of the Company (after disregarding any redundanc...