Nontraded REIT waives fee

By Bruce Kelly

Oct 21, 2012 @ 12:01 am (Updated 9:41 am) EST

Another large nontraded real estate investment trust plans to waive a heavily criticized fee tied to changes in its management.

KBS REIT II, which has $2.9 billion in total assets, said that it won't pay an internalization fee or compensation to its adviser, KBS Capital Advisors LLC, should the REIT decide to make a transaction such as acquiring its adviser.

REIT sponsors consistently have imposed the charge when the contract between the REIT and its outside adviser expires, with the REIT then acquiring the outside adviser.

That charge, which has drawn criticism because it typically isn't fully disclosed in offering documents, has cost investors in several big REITs hundreds of millions of dollars.

bkelly@investmentnews.com Twitter: @bdnewsguy

  @IN Wire

Apr 20 06:10AM
Breaking down the role of the ETF strategist http://t.co/N4EpYx8I8d
Apr 19 11:12PM
Are active ETFs finally growing in popularity?: http://t.co/7xg7LFNEnZ

Career Center

Explore your opportunities and be informed for your next move.

Company Type
Firm Type
Clearing Firm
Presented by

Most Watched Video

7:12The 2 biggest factors driving growth in active ETFs

Ugo W. Egbunike Dir. Of Business Development, ETF.com Greg Crawford Deputy Editor, InvestmentNews

Video Spotlight
1:47People are Living Longer. Good News or Bad News?

Sponsored by Oppenheimer Funds Inc.