Management fees, performance fees, leasing fees, asset and property management fees and development services fees. That's what investors are considering as they decide whether to invest alongside Brett Blundy in his latest float, Aventus Retail Property Fund.
Investors have honed in on the fee details as Aventus chief executive Darren Holland and chief operating officer Gary Jones pitch to fund managers and Morgans brokers decide whether to bid for stock on behalf of clients.
Potential investors are faced with a tiered base fee worth up to 0.7 per cent of gross assets for the first $1.5 billion in the fund; a 20 per cent performance fee based on a 12 per cent hurdle rate; and property and development management fees in line with market rates.
It's understood the fee schedule was altered slightly after recent market soundings and are said to be in-line with property investor expectations.
Brett Blundy and Holland are expected to own 30 per cent of the fund on listing, having committed to reinvesting all of their equity in the private retail portfolio.
Their stakes will be placed under escrow, with half the shares available to trade after the June 2016 result and the other half unlocked at the December 2016 profit announcement. As first reported by Street Talk Online on Monday, Aventus is seeking to raise $300 million at $2 a unit. The IPO would see Aventus list with a $700 million market capitalisation on October 1 and a 7 per cent distribution yield per unit based on 2016 financial year forecasts.
The offer was also pitched at a 9.5 per cent premium to net tangible assets per unit, which accounts for the $4.8 million stamp duty and $17.7 million offer costs. The 14-property portfolio was valued at $905.7 million.
