The key changes include:
- An increase in the base management fee paid to The GPT Group (GPT), commencing 1 July 2016, from 45 basis points to 50 basis points of Gross Asset Value up to $6 billion, with 45 basis points thereafter;
- Removal of the performance fee structure paid to GPT from 1 July, 2016;
- A pay-out of accrued over performance to GPT, estimated at $13.7 million (approximately $6.8 million contribution to 2016 FFO post-tax and net of GPT’s interest in GWOF);
- Pipeline rights amended to move to a rotational basis, with both GPT and GWOF getting access to both established assets and developments;
- GPT’s minimum holding requirement in GWOF amended to 15 per cent (previously 20 per cent), effective from 1 July 2017; and
- The introduction of an Investor Representation Committee.
GPT Head of Funds Management, Group Strategy and Research, Nicholas Harris said the Group and the Non-Executive Directors had consulted extensively with the wholesale investors over the last 12 months on the proposed changes to the terms.
“There has been a good dialogue between the Group, investors and the Non-Executive Directors and this is a pleasing outcome for both GPT and the Fund,” Mr Harris said.
GWOF Fund Manager Martin Ritchie said that there was a very high level of participation by investors with approximately 99% of the register voting.
“GWOF is Australia’s number one performing wholesale office fund over 1, 3, 5 and 7 years and we are looking forward to continuing our industry leading performance,” Mr Ritchie said.
For further information contact:
Head of Investor Relations
The GPT Group
+61 2 8239 3536
+61 437 994 451
Group Media & Communications Manager
The GPT Group
+61 2 8239 3979
+61 417 256 563