Business
Publication of circular and notice of EGM
Publication of circular and notice of EGM.
About this update from Schroder Real Estate Investment Trust Ltd
[{"type":"text","content":"\n\nProposed amendments to the Company's investment objective and policy, and the Investment Management Agreement\nSchroder Real Estate Investment Trust Limited (the \"Company\") has today published a circular (the \"Circular\") proposing amendments to the Company's investment objective and policy, and to the Company's investment management agreement (the \"Proposals\").\nThe purpose of the proposed changes to the Company's investment objective and policy is to formally include sustainability at the centre of the Company's investment proposition, with a sustainability improvement and decarbonisation strategy focused on adapting existing buildings into those that are both modern and fit for purpose. This should also enable the Company to proactively respond to the UK's Net Zero Carbon objectives, whilst optimising portfolio performance to seek enhanced total returns for shareholders. The strategic evolution represents the culmination of views from the Board, the Company's investment manager, Schroder Real Estate Investment Management Limited (the \"Manager\") and advisors, as well as feedback from shareholders. \nAccordingly, the Circular proposes amendments to the Company's investment objective and policy that reflect the strategy outlined above. As well as providing further details of the Proposals, the circular includes a notice of an extraordinary general meeting to be held at 10.00 am on 15 December 2023 at 1 London Wall Place, London, EC2Y 5AU (the \"EGM\") at which shareholders will be asked to vote on a resolution to approve the proposed changes to the Company's investment objective and policy (the \"Resolution\").\nTo align the Manager's compensation with the delivery of the specified sustainability objectives, the Board and the Manager have agreed to make certain amendments to the Manager's existing investment management agreement with the Company (the \"IMA\") - a 5 basis points increase or decrease in the management fee depending on sustainability and income related KPIs being achieved.\nIn recognition of the work undertaken by the Manager in the design and implementation of this formalisation of sustainability objectives, the Board has also agreed to amend the term of the IMA, to be terminated on not less than 12 months' notice, such notice not to expire prior to the second anniversary of the passing of th...