Business
Revisions to Investment Management Arrangement
Home REIT plc announced revisions to its investment management agreement with AEW UK Investment Management LLP, effective August 22, 2025. The revised agreement reflects the company's managed wind-down strategy and ongoing sale process. The new fee structure for AEW includes: £167,000 per month for three months after the company owns fewer than 10 properties, then £120,000 per month for three months, and finally £42,000 per month until termination. Additionally, AEW will receive up to a maximum of £1 million annually, comprising 10% of gross rent collected and 10% of rent arrears collected. The revised agreement can be terminated with six months' written notice, no earlier than August 21, 2026. The company expects its cash and rental income to cover operational expenses and fees during the wind-down. Disclaimer*
About this update from Home Reit Plc
[{"type":"text","content":"\n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION\n22 August 2025\nHome REIT plc\n(\"HOME\" or the \"Company\")\nRevisions to Investment Management Arrangement\nThe 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.\nAEW 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).\nAhead 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.\nUnder the revised IMA, which is effective from 22 August 2025, AEW is entitled to a revised fee structure as follows:\n· £167,000 per month to expire three months after the date on which the Company holds fewer than 10 properties.\n· Thereafter, £120,000 per month for a period of three months.\n· Thereafter, £42,000 per month until termination of the revised IMA.\n· 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.\nThe 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.\nThe 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.\nMichael O'Donnell, Non-executive Chairman of the Company, commented: \"The expiry of the Comp...