OUR MARKET ADVANTAGE FOR INVESTORS MANAGEMENT FEE COMPARISON
When investing in property funds, one of the first things people ask is “What are the fees?” and that is a truly relevant question. A high number of fees and their associated costs (and complexity) can give the perception that this is where the money is made for the fund managers. At Simply Industrial, our focus is on capital gains and keeping things simple. Low overheads and people structure, is important to us in our approach of “simple and thrifty.” We do not want to copy other funds… we are what we are! Therefore Simply Industrial has designed its fee structure on simplicity and wanting to offer something different, focusing on Simply Industrial two P’s, Procurement and Portfolio.
P1: Procurement P2: Portfolio
Simply Industrial’s strategy is to maintain low overhead costs and focus on maximising returns to its investors rather than allocating resources towards operational expenses. This approach is designed to ensure that the fund remains profitable and competitive while also generating low-term value for its investors.
Figures for other property funds as at August 2021
FUND MANAGER: SIMPLY INDUSTRIAL
Annual Management Fee: Portfolio fees: 0.50% + GST of the value of acquired properties
Property Management Fee: Nil included in Portfolio fees
Performance Fee: No performance fees as when Simply Industrial delivers results all shareholders benefit
Acquisition/Sell Transaction Fees: Procurement fee: 0.95% of acquisition price.
Other Additional Fees: No additional fees
FUND MANAGER: EXAMPLE OF SOME OTHER PROPERTY FUNDS
Annual Management Fee: Up to 1% per annum of total assets
Property Management Fee: Others up to 5% of gross income
Performance Fee: Others up to 20% of shareholder returns and no cap
Acquisition/Sell Transaction Fees: Up to: 2% of acquisition price | Sale fee: 2% of gross sale price
Other Additional Fees: Underwriter fees for capital raise | Re-leasing fee and new lease fee | Brokerage fees for capital raise | Termination fees
FUND MANAGER: THE SIMPLY INDUSTRIAL SIMPLICITY AND DIFFERENCE
Annual Management Fee: Includes all management costs, including property management fees
Property Management Fee: Included in the Portfolio fees
Performance Fee: No performance fees as when Simply Industrial delivers results all shareholders benefit
Acquisition/Sell Transaction Fees: In line with other funds in view of work involved in procuring properties
Other Additional Fees: Fees not charged by Simply Industrial: New lease or re-leasing fees (other than professional costs charged direct to Simply Industrial) | Selling fees | Capital Expenditure fee (however capital additions and developments that create new rental streams are part of the procurement fee) | Also there are no stand-alone capital raising fees, debt raising fees (brokerage fees)