Acquisition fees

Acquisition and disposal fees are fees charged to a fund on the acquisition and disposal of assets.

Notes:
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.