Current report 3/2020 of 20 January 2020

Issuer’s subsidiary signs material agreement to provide asset management services as part of investment platform for logistics market

The Management Board of REINO Capital S.A., based in Warsaw, (“Issuer”) announces that on 20 January 2020, as part of subsequent stages related to the development of an investment platform for the Polish logistics (warehouse) property market and resulting from the strategic partnership with IO Asset Management LLP, a subsidiary of the Issuer – REINO IO Logistics Sp. z o.o. (“Subsidiary”), the formation of which had been communicated by the Issuer in current report 30/2019 of 4 October 2019, signed an agreement with POLISH LOGISTICS (UK) LLP and its special-purpose vehicles regarding management of their assets.

The Subsidiary’s key task as asset manager will be to make and implement all decisions pertaining to the operations of the special purpose vehicles that own the investment properties. In exercising control over the general partners of the special-purpose vehicles, the Subsidiary will also be responsible for exercising corporate rights by these companies’ shareholders.

The Subsidiary’s fee is based on a monthly rate, calculated as a percentage of assets under management, specified on a market level, typical for this type of agreement. The agreement places a range of responsibilities on the Subsidiary that are typical for asset management services. From the viewpoint of risk factors, failing to discharge these duties may lead to the loss of remuneration and in extreme cases to terminating the agreement and losing control over the management of the special-purpose vehicles, leading to the necessity to sell the stake in POLISH LOGISTICS (UK) LLP.

According to the Issuer, the likelihood that these risk factors related to the agreement will materialise is not high due to the essential knowledge and experience of the Group’s companies involved in asset management services, particularly REINO Partners Sp. z o.o. In this context, the possibility of benefiting from the experience and competence of the strategic partner – IO Asset Management, which has a 40% stake in the Subsidiary, is also of importance.

Executing the agreement is strictly related to other activities and events concerning implementation of REINO Capital’s business development strategy for the logistics market, in particular bringing Grosvenor into the investment structure and the planned entry of the new logistics platform into the first investment project.

According to the Management Board, executing the agreement will make it possible to considerably grow the scale of the Issuer’s operations, particularly as regards revenue from the provision of asset management services, which will also be reflected in future financial results. 

Legal basis:

art. 17 sec. 1 MAR – inside information

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REINO Capital is a listed holding company that owns a group of entities engaged in investments and fund management on the commercial property market.

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