THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED
UNDER THE UK'S MARKET ABUSE REGULATION. UPON THE PUBLICATION OF
THIS ANNOUNCEMENT, SUCH INSIDE INFORMATION IS NOW CONSIDERED TO BE
IN THE PUBLIC DOMAIN.
23 December 2024
Triple Point Social Housing
REIT plc
(the
"Company" or, together with
its subsidiaries, the "Group")
APPOINTMENT OF NEW INVESTMENT
MANAGER
Further to the announcement on 30
September 2024, the Board of Triple Point Social Housing REIT plc
(ticker: SOHO) (the "Board") is pleased to announce that it
has appointed Atrato Partners Limited ("Atrato") as the Company's new
investment manager ("Investment
Manager")[1].
Triple Point Investment Management
LLP ("Triple Point") will
continue to manage the Company's portfolio until the transition to
Atrato becomes effective on 1 January 2025.
Investment management review
The appointment of Atrato concludes
the independent Investment Management Agreement ("IMA") Review process undertaken by Akur
Limited ("Akur"), as
announced on 9 May 2024. This process included an extensive review
of the Company's existing management arrangements, benchmarking of
market precedents and engagement with a significant number of
high-quality prospective investment management firms, following
which Akur provided its independent view and recommendations to the
Board to facilitate a decision. The Board wishes to thank all
parties who participated in the process.
The Board firmly believes that the
appointment of Atrato is in the best interests of shareholders and
will offer a variety of benefits, including materially reducing the
investment management fees relative to the previous
arrangements.
Background to Atrato
Atrato is a leading investment
manager with extensive expertise in the real estate sector and deep
sector knowledge of the Social Housing sector. Atrato is the
Investment Adviser to Supermarket Income REIT plc, a FTSE 250
investment trust listed on the Main Market of the London Stock
Exchange.
With a focus on long-term,
income-generating assets, Atrato has cultivated a reputation for
delivering value through disciplined asset selection, active
management and long-term stewardship. Its team of seasoned
professionals brings significant industry expertise across the real
estate sector, encompassing retail, logistics, residential and
infrastructure-focused investments.
Atrato's approach is anchored in
sustainability and responsible investment principles, aligning its
investment strategies with long-term environmental, social and
governance considerations.
Benefits to shareholders
The Board's decision to appoint
Atrato as the Company's Investment Manager was guided by several
criteria which the Board believes will provide the following
benefits to the Company's shareholders:
·
Closer alignment with shareholders' interests and
material cost savings for the Company in the long term, underpinned
by a management fee calculated on the basis of market
capitalisation; and
·
A renewed focus, with a strategy to improve the
quality and security of rental income via proactive asset
management.
Further, the Company's shareholders
will continue to benefit from:
·
An investment manager with extensive listed
company experience, particularly within real estate; and
·
A team of highly specialised, experienced
investment professionals with deep sector knowledge and
networks.
Terms of appointment
Management
Fee
Under the new alternative investment
fund management agreement (the "New AIFMA"), the management fee,
payable by the Company on a quarterly basis, will be based on a
percentage of the Company's market capitalisation at the end of
each quarter (the "Management
Fee"), ensuring alignment with shareholders. The Management
Fee will be calculated using the following fee thresholds and
rates:
Market capitalisation threshold
|
Relevant fee rate (per annum)
|
Up to and including £150m
|
1.25 per cent.
|
Above £150m and up to and including
£300m
|
1.00 per cent.
|
Above £300m
|
0.70 per cent.
|
As an illustrative example of the
potential benefit of this new fee arrangement, over the preceding
12-month period, this structure would have delivered annual savings
to the Company of over £1.75 million when compared to the
historical fee arrangements.
The Investment Manager, or any
connected person nominated, undertakes to invest in and hold an
amount of shares in the Company equal to 25% of the Management Fee
(after making an allowance for tax payable by the Investment
Manager). The Investment Manager has agreed, subject to certain
exceptions, not to dispose of such shares for a period of 12 months
from the date of their acquisition.
Success Fee
If Atrato arranges and effects the
sale of any properties at the direction of the Company, and the
Company elects to return such value to shareholders, the Company
shall pay to Atrato a fee equal to 0.5% of the gross sale price of
the relevant properties.
Notice
The New AIFMA with Atrato may be
terminated by the Company on 12 months' written notice at any
time.
Transition to Atrato
Atrato's appointment as Investment
Manager is due to become effective on 1 January 2025.
The Company has negotiated a
termination agreement with Triple Point, resulting in an
accelerated termination and which, on a phased basis, is broadly in
line with the 12-month contractual written notice
period.
As part of the termination
agreement, Triple Point will continue to work cooperatively with
the Company to affect an orderly handover of its obligations and
will continue to provide support services for the 2024 statutory
audit and results expected to be published in March
2025.
Change of name
Following the signing of the New
AIFMA, an application has been made to change the Company's name to
"Social Housing REIT plc". A further announcement will be made
pursuant to UKLR 6.4.14(R)(1) in due course.
Chris Phillips, Chair of the Company,
commented:
"I am very pleased that after a
rigorous and highly competitive review process we have now
finalised the appointment of a new investment manager. We believe
that Atrato will bring a renewed focus to the Company with a
strategy to improve the quality of our rental income and portfolio.
The agreement to calculate the investment management fee based on
market capitalisation will bring further alignment with
shareholders and will deliver material long term cost savings to
the Company.
"The Board is also undertaking, in
conjunction with Atrato, a rigorous review of all costs and
counterparties with a view to maximising distributable
income.
"Finally, I would like to thank the
Triple Point team for their dedication to the Company in the seven
years since its IPO and their effort in building a substantial,
diversified portfolio of specialised supported housing assets,
providing homes for vulnerable residents and a stable income for
our shareholders."
Adrian D'Enrico, Managing Director, Social Housing, at Atrato
Partners, commented:
"We are delighted to have been
appointed as Investment Manager to the Company. We look forward to
working with the Board to make a positive contribution to the UK
specialised supported housing sector. At its core, we believe this
is a good portfolio and one which we can materially improve for the
benefit of residents, tenants and the Company's
shareholders."
ENDS.
FOR
FURTHER INFORMATION ON THE COMPANY, PLEASE
CONTACT:
Triple Point Social Housing REIT plc
|
Via Brunswick Group
|
Chris Phillips
|
|
|
|
Atrato Partners Ltd
Adrian D'Enrico
Michael Carey
Chris McMahon
|
ir@atratopartners.com
|
Akur Limited (Financial Adviser)
|
ssergeant@akur.co.uk
|
Siobhan Sergeant
|
|
Tom Frost
|
|
Anthony Richardson
|
|
|
|
Brunswick Group (Financial PR Adviser)
|
Tel: 020 7404 5959
|
Nina Coad
|
|
Robin Wrench
|
|
Mara James
|
|
The Company's LEI is
213800BERVBS2HFTBC58.
Further information on the Company
can be found on its website at www.triplepointreit.com.
NOTES:
The Company invests in primarily
newly developed social housing assets in the UK, with a particular
focus on supported housing. The majority of the assets within the
portfolio are subject to inflation-linked, long-term, Fully
Repairing and Insuring ("FRI") leases with Approved Providers
(being Housing Associations, Local Authorities or other regulated
organisations in receipt of direct payment from local government).
The portfolio comprises investments into properties which are
already subject to a lease with an Approved Provider, as well as
forward funding of pre-let developments but does not include any
direct development or speculative development.
The Company was admitted to trading
on the Specialist Fund Segment of the Main Market of the London
Stock Exchange on 8 August 2017 and was admitted to the Official
List of the Financial Conduct Authority and migrated to trading on
the Main Market on 27 March 2018. The Company operates as a
UK Real Estate Investment Trust ("REIT") and is a constituent of
the FTSE EPRA/NAREIT index.