SIMPLY INDUSTRIAL MANAGEMENT AGREEMENT
Simply Industrial’s approach to fees for the acquisition and performance of the property portfolio is kept simple and easy to understand. There aren’t numerous fees that are calculated off similar underlying drivers. The Simply Industrial approach is to fairly compensate the huge amount of work that goes into the acquisition and oversight of the portfolio. Fees have remained the same since the inception of Simply Industrial.
PROPERTY PROCUREMENT FEE
*0.95% + GST of the value of acquired properties at acquisition.
Property Procurement covers all aspects of the process that enable the purchasing of properties – including their identification, due diligence, execution of the purchase where appropriate and coordination of all our professional support to ensure this is achieved. Not every property that Simply Industrial Management considers, gets purchased.
Also included are the activities associated with debt and equity raising to enable the purchasing of new properties and is also payable on developments on existing properties that increases rentals.
* Acquisition fee paid in shares in Simply Industrial or cash
PROPERTY PORTFOLIO FEE
0.50% + GST of the value of the property portfolio per annum.
Property Portfolio relates to all aspects of oversight of the operation of the portfolio to ensure shareholder returns are achieved. At the heart of this activity is the property management of all properties within the portfolio – including tenant management and maintenance, finding new tenants when appropriate and completing lease renewal and negotiations as required.
This also includes the governance and management of Simply Industrial (excluding directors fees and expenses detailed in Section 10 of the IM). Investors’ relations, financial management and communications all form a part of this work.
This fee is payable monthly based on the valuation of properties on the first day of the financial year, or purchase price if purchased during the financial year. For the purposes of this calculation, properties are only revalued on balance date.
The management agreement is for three years and renewed annually.