CUSTODIAN PROPERTY INCOME REIT PLC

Related Party Transaction • Jun 22, 2020

National Storage Mechanism | Additional information

Custodian REIT plc (CREI)

Custodian REIT plc : Amendment to Investment Management Agreement

22-Jun-2020 / 09:54 GMT/BST

Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.

The issuer is solely responsible for the content of this announcement.

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22 June 2020

Custodian REIT plc

("Custodian REIT" or "the Company")

Amendment to Investment Management Agreement

Custodian REIT (LSE: CREI), the UK commercial real estate investment company, announces that the terms of its Investment Management Agreement ("IMA") with its external discretionary fund manager, Custodian Capital Limited ("the Investment Manager"), a subsidiary of Mattioli Woods plc, have been amended following expiry of the IMA's three year term.

In light of the performance of the Investment Manager, the Board has agreed a further three year term with 12 months' subsequent notice to the Investment Manager's ongoing engagement from 1 June 2020.  Fees payable to the Investment Manager under the IMA have been amended to include:

• A step down in the annual management charge from 0.65% to 0.55% of net asset value ("NAV") applied to NAV in excess of £750 million; and
• A step down in the administrative fee from 0.05% to 0.03% of NAV applied to NAV in excess of £750 million.

Key Investment Manager personnel set out in the IMA now comprise Richard Shepherd-Cross (Managing Director), Ed Moore (Finance Director), Alex Nix (Assistant Fund Manager) and Tom Donnachie (Property Manager), with Nathan Imlach (Chief Financial Officer of Mattioli Woods plc) having stepped down and been replaced as Company Secretary by Ed Moore.

All other key terms of the IMA remain unchanged.

The Board considers these amendments to the IMA to be in the best interests of the Company's shareholders because:

• Growth in NAV above £750 million will further reduce the Company's ongoing charges ratio and increase dividend capacity;
• Another three year term provides the Investment Manager with security of tenure and allows further investment in the dedicated systems and people providing its services under the IMA; and
• The Board acknowledges the demands which an increased Corporate Governance regime, including environmental, social and governance ("ESG") reporting, is placing on the Investment Manager.

For the purposes of the Listing Rules, the Investment Manager is a related party of the Company and the amendments to the IMA fall within Listing Rule 11.1.10 R, thus not requiring a shareholder vote.

David Hunter, Chairman of Custodian REIT, commented:

"The Board has been pleased with the performance of the Investment Manager, particularly the timely deployment of new monies on high quality assets, and is confident it will successfully navigate the Company through the current market uncertainty caused by the COVID-19 pandemic.  Once markets stabilise, the revised IMA terms will provide further economies of scale with NAV growth."

- Ends -

For further information, please contact:

Custodian Capital Limited
Richard Shepherd-Cross / Nathan Imlach / Ian Mattioli MBE	Tel: +44 (0)116 240 8740
	www.custodiancapital.com

Numis Securities Limited
Nathan Brown / Hugh Jonathan	Tel: +44 (0)20 7260 1000
	www.numiscorp.com

Camarco
Ed Gascoigne-Pees	Tel: +44 (0)20 3757 4984
	www.camarco.co.uk

Notes to Editors

Custodian REIT plc is a UK real estate investment trust, which listed on the main market of the London Stock Exchange on 26 March 2014.  Its portfolio comprises properties predominantly let to institutional grade tenants on long leases throughout the UK and is characterised by properties with individual values of less than £10 million at acquisition. 

The Company offers investors the opportunity to access a diversified portfolio of UK commercial real estate through a closed-ended fund.  By targeting sub £10 million lot size, regional properties, the Company intends to provide investors with an attractive level of income with the potential for capital growth. 

Custodian Capital Limited is the discretionary investment manager of the Company. 

For more information visit www.custodianreit.com and www.custodiancapital.com. 

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ISIN:	GB00BJFLFT45
Category Code:	MSCU
TIDM:	CREI
LEI Code:	2138001BOD1J5XK1CX76
OAM Categories:	3.1. Additional regulated information required to be disclosed under the laws of a Member State
Sequence No.:	71040
EQS News ID:	1075171

End of Announcement	EQS News Service

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