Commercial Finance Specialists

F&C has decided to retain the management team for its property investment trust.

F&C Commercial Property Trust (FCPT) has taken the decision to retain its existing portfolio management team.

Following the failed attempt to merge the fund with the UK Commercial Property Trust (UKCPT) earlier this year, the FCPT board decided to serve notice on the agreement it had with F&C Reit to manage the property investment.

However, after a cooling off period, the decision has been reversed and F&C Reit's mandate has been retained.

Terms of the new deal mean that annual management fees for overseeing the £617 million portfolio of commercial development assets will be capped at 0.6 per cent.

"The directors are delighted to have agreed new management terms with F&C Reit which will result in reduced expenses and secure continuity of portfolio management," said John Stephen, chairman of FCPT.

Shareholders rejected the FCPT-UKCPT merger after a number of critics claimed that the move would not be of benefit to either fund.

Posted by Tess Nelson