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Inovalis Real Estate Investment Trust announces modifications to its management agreement
Inovalis Real Estate Investment Trust announces modifications to its management agreement ...
About this update from Inovalis Reit
[{"type":"text","content":"\n\n\n\nInovalis Real Estate Investment Trust announces modifications to its management agreement\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\nCanada NewsWire\nTORONTO, March 15, 2018\n\n\n\nTORONTO, March 15, 2018 /CNW/ - Inovalis Real Estate Investment Trust (\"Inovalis\" or the \"REIT\") (TSX: INO.UN), a leading Canadian-listed REIT focused on managing and owning a portfolio of high quality assets in Germany and France, is pleased to announce that its Board of Trustees has approved the extension of, and modifications to, the external asset and property management agreement with Inovalis S.A. (the \"Manager\"). \n\nThe Board of Trustees and the Manager agree that, given the REIT's relative size, it is in the REIT's best interest to not internalize the asset and property management function at this time. The management agreement (the \"Agreement\") maturing in April 2018 will be extended with the terms amended as outlined below.\n\n\nTerm: The initial term will be for three (3) years, not to exceed April 1, 2021. The Agreement shall be automatically renewed for an additional two (2) years if the REIT's AFFO per unit for the year ended December 31, 2020 is greater than 115% of the AFFO per unit of the REIT as at December 31, 2017. The AFFO calculation shall be consistently applied and approved by the audit committee. Internalization can occur at any time at the discretion of the Board of Trustees.\nAsset Management Fees: Will be reduced from 0.75% to 0.50% and calculated based on the book value of assets. Fees will be payable in cash. Based on the REIT's cash resources and the projected AFFO the Board will propose to the unitholders whether the Asset Management fees should be paid fully or partially in  exchangeable securities, the exact composition of which will be determined by the Board annually. Any issuance of exchangeable securities shall be subject to TSX approval. If TSX approval is not obtained for the issuance of exchangeable securities, the Asset Management fees shall be payable in cash only.\nAcquisition Fees: 1.00% of the purchase price of properti...