Advance Terrafund REIT and its managing company - Karoll Finance has agreed for a decrease of the management fee

Advance Terrafund REIT and Karoll Finance as its managing company has agreed that effective from 01.07.2010 the method of calculation and formation of the amount of the remuneration shall be amended by deleting from Article 9, Paragraph 1 of the Agreement from 30.05.2005 the text of Item 2 /the second item/ with the following contents: “2. 1.5% /one point five percent/ of the difference between the revalued value and the acquisition cost of the land assets of Advance Terrafund REIT accumulated by the end of the previous calendar year and evidenced in the annual audited financial statements of the Company, payable quarterly in arrears in 4 equal installments per year;”

Pursuant to Article 1 hereof the parties recognize and agree that Advance Terrafund REIT shall not pay to Karoll Finance a remuneration amounting to 1.5 % /one point five percent / on the difference between the revalued value and the acquisition cost of the land assets of Advance Terrafund REIT. Management fee stays unchanged at 0.375% of the value only of the Fund’s investment properties at acquisition cost, paid every quarter. The performance fee of 10% of rent proceeds and sale profit is unchanged.

By the fore stated improvement of management fee structure, Advance Terrafund REIT strives for implementation of international practices of REIT’s asset management. This is the consecutive step for optimization of the company’s servicing costs. Thanks to the activity and interest by the shareholders, the company attracted considerable amount of capital, which allowed for increase of the investment properties. The effect of the decreased management fee will lead to increase of the profit of the Fund and distribution of dividend for the shareholders.

Atanas Dimitrov
Investor Relations Director
Advance Terrafund REIT
Tel: +359(2)4008332

Back to news