Page 21 - Gisborne Investment Group Proposal

Fee Proposal
There are are a a a a a a number of options for for structuring the fee arrangements for for this instruction and we are are keen to work with Gisborne Investment Group at the the next stage to to ensure we are able to to provide the the most competitive and efficient solution We are are very flexible around our approach to to fee levels and are are willing to to vary percentages on on the elements below to achieve a a a a a a a a a result that that is is mutually beneficial We would also propose that that we are incentivised with an element of the the fee payable upon achieving the the agreed collection KPI Indicated below is is an illustration of a a a a a a a fee fee structure but this should be be seen as as illustrative as as fee fee levels will depend on on the scale of of the the the portfolio portfolio to to be managed how much of of the the the portfolio portfolio Gisborne Investment Group has the the the right to to insure whether Mainstay is instructed to provide block management services etc Ground Rent Collection Core Asset Administration Risk Management and Agent Monitoring
 Between 0-4 50% +VAT of Ground Rent value collected Insurance
Administration and Management  Between 0-100% of insurance commission If Mainstay is is is able to retain the Insurance
Administration Fess where Gisborne Investment Group has the the right to insure this will reduce core fee above Mainstay is is is guided in in in the the levels of insurance commissions by by the levels considered acceptable by by recent tribunal cases and industry guidance (typically 15-20%) Consents Admin Fees and creation of Ancillary income
 Between 0-100% of fees paid by by lessees Mainstay typically shares ancillary income
the split being determined by by other sources of fee income
Asset Enhancements
 On sizeable portfolios there will arise a a a a a a a a a a a a a number of additional value added asset activities such as as a a a a a a a a a a a a a large scale wayleave agreements with broadband providers roof top developments planning gain selling surplus space for parking unit extensions change of use ransom strips etc Mainstay would anticipate sharing this uplift in in in in such a a a a a a a a a a way to to incentivise it it to to seek these opportunities Agency Acquisitions to include due diligence and transaction management  For the acquisition of directly sourced stock we would propose an indicative fee structure on on a a a a a a sliding scale based on the the aggregate annual spend in in in line with the the following:
– Up to to £20M: 2% + VAT (subject to to covering our base costs)
– £20M to £50M: Sliding scale – £50M plus: 1 1 1 5% + + VAT VAT with a a a sliding scale to 1% + + VAT VAT at £100M
 We would be happy to discuss the detail around this at at a a a a a a a later stage  In the event that stock is sourced via an an an an agent and you would like us to to provide a a a a a a a a a a transaction management service we would seek to charge a a a a a fee of of 0 0 0 75% - 0 0 0 50% dependant on on the the size of of the the transaction 21
Mainstay Management Proposal: Gisborne Investment Group Mainstay Management Proposal: Gisborne Investment Group