UK commercial property trust Alternative Income REIT has appointed multi-let property specialist M7 as the company's investment advisor with immediate effect.
According to the agreement, M7 will review each of the REIT's assets - across a diversified portfolio of 19 UK properties - and consult on the company's investment policy.
M7 will be paid a minimum of £90,000 (€100,800) per quarter, or 0.5% of the REIT's net asset value, but only from 1 October 2020.
The partnership will initially run up until the end of March 2021, with the two firms targeting a further, long-term arrangement if it proves successful.
Steve Smith, chairman of Alternative Income REIT, said: 'The board welcomes the appointment of M7 who will work with the group’s recently appointed service providers to achieve best value for our shareholders.
'We look forward to working closely with such an experienced and well-resourced team with an excellent track record of delivering strong returns to investors. The aim will be to extend M7’s contract in the spring of next year if not before.'
M7's mandate will include supplying advice, support and services including strategy, debt advisory, reporting, fund accounting and investment advisory services together with asset management, operational advice, budgeting and planning for the group’s portfolio.
Richard Croft, chairman of M7 Real Estate added: 'To be appointed by the board of Alternative Income REIT is a hugely positive endorsement of the M7 Real Estate platform, allowing us to utilise not only our core asset management skills, where we have a strong track record of value creation, but also our wider strategic investment, fund and debt advisory expertise.
'We now look forward to focusing these services on the company and its portfolio in order to create value for its shareholders.'
