Strategic Real Estate Advisors
StratREAL real estate investment advisory terms and fees
Our fees are agreed on an individual basis with each client to take into account their personal circumstances, the services required and their preferred real estate investment type. However, to aid potential clients we have set out an outline of our fees as they apply to acquisitions in the UK. They may differ for other countries.
The StratREAL investment programme normally requires a minimum capital investment of approximately GBP 5 million.
Services for clients are subject to agreement to the following:
- Signature of a mutually acceptable consultancy agreement
- A one – off non – refundable retainer, offset against our advisory fee. The fee ranges between 1.5 and 2% of the purchase price depending on the level of services and financing required
The cost of making a typical GBP 10 million investment acquisition in the UK:
a worked example
| % | £ | |
| StratREAL's advisory fee | 1.50 | 150, 000 |
| External financing costs | ||
| Bank arrangement fee* | 0.25 | 25, 000 |
| Bank's legal costs | 0.20 | 20, 000 |
| Bank's property valuation cost | 0.15 | 15, 000 |
| UK stamp duty | 4.00 | 400, 000 |
| Legal fees | 0.25 | 25, 000 |
| Property structural survey and valuation costs | 0.15 | 15, 000 |
| Tax and legal ownership structure | 0.10 | 10, 000 |
| Total | 6.6 | 660, 000 |
*Based on a total debt raised: up to 75% of the purchase value; all other fees and costs are based on the purchase price of the property. Fees are shown net of VAT, where applicable, at 17.5%
Should you require an indication of US or European fees, please contact us on info@stratreal.com
StratREAL also provides comprehensive post – acquisition asset management services in conjunction with the acquisition programme. We monitor and coordinate local property management and tax compliance. We actively manage the property asset for optimum financial performance and produce quarterly client asset management performance reports. Our asset management and reporting fee is between 1.5 and 2.5% of the gross rental income, depending on the complexity of the property leases and financing.
We can also help with the sale of the property. The fees for the service are quoted case by case.
