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To generate an attractive rate of return through investments in the Russian property market.
The Company has entered into the Property Advisor Agreement with Raven Russia Property Management Limited. The Property Advisor will receive an annual management fee equal to 2% of the ongoing gross asset value of the Group from time to time. The performance fee becomes payable once the annualised total return in any accounting period exceeds 12%. Once this threshold is exceeded the Property Advisor is entitled to receive a fee equal to a proportion of such excess, rising from 20% to 35% on a straight line basis for annualised total returns in any accounting period ranging from 12% to in excess of 25%. The performance fee is to be settled as to 30% in cash and the balance in Ordinary Shares (valued by reference to the average middle market closing price of Ordinary Share over the last 20 trading days in the accounting period in relation to which the performance fee is being paid). The Property Advisor Agreement is to run for an initial 5 year term and can be terminated on the 4th anniversary of Admission with effect from the 5th anniversary of Admission. If an agreement is not concluded by the end of year 4 the Property Advisor Agreement will be terminable on 12 months notice, expiring no earlier than the 5th anniversary of Admission. The administrator will be paid a fixed fee of GBP125,000 p.a. The Administration Agreement is terminable by either party on not less than 90 days notice. All fees are exclusive of VAT or any similar taxes (where appropriate).