Property trust FCPT hires firm to manage portfolio on lower fee

PROPERTY investment trust FCPT has decided to re-hire F&C REIT to manage its portfolio, after considering changing managers in June in the wake of a failed takeover.

F&C REIT has lowered its fees in order to retain the contract to manage assets worth £620m, which was thrown into doubt when FCPT owner Ignis failed to convince smaller shareholders of a merger with F&C REIT.

People familiar with the deal said other firms had approached FCPT over the summer, but that F&C REIT had been retained without resorting to a beauty parade.

FCPT deputy chairman Chris Russell told City A.M. the news should end talk of another takeover bid: “If a deal with this kind commercial logic has failed, then I think today’s agreement must close the door to future approaches in the near term – though you can never say never.”