ALX Management and Advisory Agreements
ALX was externally managed by Macquarie Fund Advisors Pty Limited (MAF) until 31 March 2019. ATLAX and ATLIX terminated the Management/Advisory Agreements on 1 April 2019 and management of ALX transitioned to its current management team.
In accordance with the terms of the ALX Management/Advisory Agreements base fees will continue to be paid to MFA until 15 May 2019, irrespective of the earlier without cause termination.
The base management fee is calculated at 0.85% of ALX’s Market Value over the last 10 ASX trading days in the relevant quarter (excluding shares issued after 30 June 2018).
Additionally, ATLAX and ATLIX have each entered into a Transition Services Agreement with the MFA for the period from 16 May 2019 until 31 December 2019 for a monthly fee of $750,000.
Asset level management and performance fees will be payable by ALX to Macquarie from 16 May 2019 in respect of ALX’s investment in APRR.
From 16 May 2019, Macquarie will start to receive base management fees of Euro 7.4 million per annum for ongoing management of ALX’s interest in APRR. A performance fee may also be incurred, the calculation starts on 16 May 2019 and is based on an IRR achieved from an agreed valuation of APPR at that date. A performance fee equal to 15% of actual cash flows is payable when ALX’s internal rate of return exceeds 8%.