JENNY RUTH: Is internalised management cheaper? Not necessarily

Thu, 10 Sep 2020

The push to internalise the management of property investment vehicles was supposed to better align the interests of managers and investors in order to deliver superior returns to investors. However, evidence of success is not clear cut. Vital Healthcare Property Trust, which remains externally managed, offers an extreme example of how a rapacious external manager could exploit that structure.The manager, Canada-based NorthWest Healthcare Properties Real Estate Investment Trust, was effectively shamed into changing the fee structure l...

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