Business
DRI Healthcare Announces Closing of Internalization Transaction
DRI Healthcare Announces Closing of Internalization Transaction Canada NewsWire ...
About this update from Dri Healthcare Trust
[{"type":"text","content":"\n\n\n\n DRI Healthcare Announces Closing of Internalization Transaction\n \n\n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n\n\n\n\n\n Canada NewsWire\n \n\n\n\n\n\n TORONTO\n \n\n ,\n \n\n July 1, 2025\n \n\n /CNW/ - DRI Healthcare Trust (TSX: DHT.UN) (TSX: DHT.U) (\"DRI Healthcare\") today announced that it has completed its previously announced transaction to internalize its investment management function.\n \n\n\n\n\n\n\n\n\n \"We are excited to complete this transaction and begin our next chapter as one integrated organization,\" said\n \n Gary Collins\n \n , Executive Chair of DRI Healthcare. \"We believe that our new structure will lead to better strategic alignment of interests with unitholders and stronger governance with greater transparency, ultimately benefitting all stakeholders.\"\n \n\n \"We have a strong and dedicated team, now entirely under the DRI Healthcare banner, aligned to invest in high-quality assets and build an industry leading portfolio,\" said\n \n Ali Hedayat\n \n , Chief Executive Officer of DRI Healthcare. \"With a robust pipeline of strong growth prospects coupled with the newly reduced fee structure, we anticipate enhanced value generation as we continue growing the business over the long term.\"\n \n\n\n\n Transaction Terms\n \n\n\n\n As a result of the transaction, the management agreement with DRI Capital Inc. (\"DRI Capital\") was terminated in exchange for a $48 million termination payment (plus accrued management and performance fees), and the Trust internalized the manager function by acquiring the relevant assets of DRI Capital for a purchase price of\n \n $1 million\n \n . As a result of the transactions contemplated by the asset purchase agreement, the employees of DRI Capital also transitioned to a Trust subsidiary.\n \n\n DRI Capital also agreed to indemnify the Trust and its affiliates in respect of, among other things, damages relating to the previously disclosed irregularities related to certain\n \n alleged\n \n consulting and other expenses charged to DRI Healthcare.\n \n\n The transaction was recommended for approval ...