F&C retains £617m Commercial Property trust

F&C will retain the £617m Commercial Property trust (FCPT) mandate following a failed takeover bid by Ignis-managed UK Commercial Property trust.

After a rejection of the merger by independent shareholders last month, the board of FCPT served notice on its management agreement with F&C Reit. However, following a review on the future of FCPT, it has decided to retain F&C Reit as manager. Under the new agreement, annual management fees, including performance fees, will be capped at 0.6% of average total assets, reduced from 1%. The base management fee has been reduced from 0.6% of the gross value of invested down to 0.5% of net assets per annum, and 0.25% on cash net of gearing in excess of 5% of net assets. The changes com...