12 Nov 2018 07:00
Expiry of IMA in November 2018
The five year term of the Investment Management Agreement ("IMA") entered between Hibernia REIT plc ("Hibernia" or "the Company") and WK Nowlan REIT Management Ltd (its former Investment Manager) expires on 26 November 2018. As part of the arrangements for the internalisation of the Investment Manager in 2015 (the "Internalisation") it was agreed that any payments due under the IMA each financial year would be paid, mainly in shares, in lieu of a separate incentive scheme until 26 November 2018. From this date onwards the Company's new Remuneration Policy, which was approved by shareholders at the Company's AGM in July 2018, will take effect.
The Board has considered how best to calculate any performance fees and other related payments for the final period of the IMA from 1 April 2018 to 26 November 2018. Since the IPD Ireland Index, which is used in the calculation of any relative performance fees, reports on a quarterly basis the Board has determined that it is most appropriate to measure the Company's performance to 31 December 2018, being the nearest quarter end, and to pro-rate any performance fees due for the fact that the final IMA period expires on 26 November 2018. Any performance fees due will be paid primarily in shares (subject to the standard lock-up provisions) which will issue only once the audit of the accounts for the year ended 31 March 2019 is completed.
Management changes With effect from 1 January 2019 Justin Dowling, currently Head of Asset Management, will become Director of Property with responsibility for managing all Hibernia's property assets and leading the Asset Management and Building Management teams.
Frank O'Neill, currently Chief Operations Officer, will retain responsibility for business support areas, including IT, HR and general business operations, working on a part-time basis. He will continue as a member of Hibernia's management committees. His new title will be Director of Operations.
As part of the Internalisation Frank Kenny and William Nowlan entered consultancy agreements for the period up to 26 November 2018. Frank Kenny, who is also a non-executive Director of Hibernia, will continue to provide advice on the Company's development projects and his agreement will be extended until 31 March 2019.
Danny Kitchen, Chairman of Hibernia, said:
"I am very pleased to announce Justin Dowling's appointment as Director of Property. I also want to thank Bill Nowlan for his significant contribution to the establishment and success of Hibernia and his work in promoting the introduction of REIT legislation in Ireland."
Contacts:
Hibernia REIT plc +353 1 536 9100
Kevin Nowlan, Chief Executive Officer
Tom Edwards-Moss, Chief Financial Officer
Murray Consultants
Doug Keatinge: +353 86 037 4163, dkeatinge@murraygroup.ie
Jill Farrelly: +353 87 738 6608, jfarrelly@murraygroup.ie
About Hibernia REIT plc: Hibernia REIT plc is an Irish Real Estate Investment Trust ("REIT"), listed on Euronext Dublin and the London Stock Exchange. Hibernia owns and develops property and specialises in Dublin city centre offices.