Acquisition and disposal fees are fees charged to a fund on the acquisition and disposal of assets.
The acquisition and disposal fees are either apportioned between the fund manager and asset manager or paid only to the asset manager.
The fees can either be a percentage of the gross value of the asset or a fee that is paid at the discretion of the fund manager.
Acquisition fees are not usually charged in the case where a property developer/operator contributes assets to a fund.
In some funds, the fund manager does not charge additional fees for acquisition and disposals. However, fees for external advisors, e.g.property agents, are passed onto the fund at cost.