LONDON (Alliance News) - Dragon-Ukrainian Properties & Development PLC said Thursday it is modifying its agreement with its investment manager DCM Ltd, due to the investment company not reaching the contractually agreed level of distributions.
Dragon-Ukrainian said that it is clear it will not meet the USD42.4 million of distributions which was a clause of the extension of its management agreement with DCM beyond 2016, and will therefore amend the arrangement for its continuation to 2018.
DCM's management fee will be reduced to USD1.25 million in 2017 from the previous USD1.50 million, and USD1.00 million in 2018 from USD1.40 million. The investment manager's tiered level of performance fees has also been simplified, to a fixed performance fee of 5% of all distributions to Dragon-Ukrainian shareholders.
The revised agreement will become effective on January 1, 2017 and expire at the end of 2018.
Shares in Dragon-Ukrainian were untraded at 15.25 pence Thursday afternoon.
By Adam Clark; adamclark@alliancenews.com
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