Investa has waived the acquisition fees associated with the proposed merger of four Investa funds after lobbying from APN Funds Management.
APN argued that the fees were excessive and required moderation, and estimates that it has saved its unitholders of three of its property funds $1.77 million in fees.
Investa has proposed to merge the Investa Fourth Commercial Trust with $52 million assets under management, Investa Fifth Commercial Trust with $134 million AUM, Investa Sixth Commercial Trust with $120 million AUM and Investa Brisbane Commercial Trust with $32 million AUM.
Yesterday, unitholders in each of the funds voted in favour to merge the entities into the Investa Diversified Office Fund.
The acquisition fees which would have been paid to Investa Funds Management on completion of each merger will now be retained within IDOF and will be available to supplement IDOF distributions to unitholders following the mergers.
Investa’s group executive of External Funds Les Vance said the decision to review the fee structure comes after extensive consultation with APN.
“Investa values an open and frank relationship with its major stakeholders. In working with APN, we saw longer term benefits for all involved in retaining funds within IDOF to enhance distributions going forward. Investa is happy to waive these one-off acquisition fees to enhance IDOF’s continued growth following these mergers,” he added.
APN’s director of retail funds Michael Doble said he was pleased to be able to work with Investa to deliver a much stronger outcome for the unitholders of three of its property funds which hold investments in various Investa property funds, as well as to all other investors in those Investa funds.
Australian Property Journal
