The Board is seeking to acquire interests in special situation investment opportunities that have an element of distress, dislocation, dysfunction or other special situation attributes and that they perceive to be undervalued. The principal focus is in the small to middle-market capitalisation sectors in the UK or Europe, but the directors will also consider possible special situation opportunities anywhere in the world if they believe there is an opportunity to generate added value for shareholders.
A variable fee starting at GBP 1.86m p.a. and decreasing as core assets are sold. It is expected to reduce at an annualised rate of 22% p.a. The adviser is entitled to a sales fee of 0.5% of the gross property sale value of each asset. The manager will also receive a performance fee equal to 10% of any return above a distribution to shareholders in excess of a EUR 0.1725 hurdle and 25% of any return above a EUR 0.345 hurdle.
The level of regular distribution will ultimately be dependent upon the average rental and other income generated from the property portfolio and the creation of realised gains. There were no dividends proposed or paid in the current or prior financial years.