Management of properties ..Is this fair or excessive ?

I read this article in the weekend herald.
The concept of having your property estate management handled (after you not longer wish/are capable/deceased) seems good until you calculate the fees.
On a property portfolio of say $60m the fees are
Annual fee $450k
Incentive $300k (based on a 55 increase pa)
Total $750k pa
Leasing fees,acquisition,development,custody,ownership and disposal is in addition to this.
It looks like the managers would take a third of the net current profit on a portfolio that is currently handled in a couple of hours a day!
Any Comments from property managers on what they would charge?

 

WOW, clearly property management is considerably more profitable than property investment !
I have been trying to work out what to put in my will (in preparation)
Based on this, everything will be liquidated and put into a managed fund !
(to be disbursed quarterly or as detailed in my will)

 

Where do I sign? I want to be a property estate manager!

 

This was setup as way for to convert property into being listed and then using a mgmt company to 'gouge' public investors. Similar stuff has been done with oil, resorts, etc.
So its not really about property management.
Also you have to look at based on AUM (well thats what the mgmt company would probably argue).

 

The nature of the property trusts in question and typical real estate property managers are nothing alike. The article alludes to the long term deals done to remunerate specific parties that have seemingly affected unitholder value or may affect future unitvalue if a hostile board seeks to enact changes to the trust. Listed and unlisted trusts can have these sorts of deals and it can affect value. Most have competitive pricing that seek to keep fees low. eg GPT, Stocklands, Cromwell and so on. But others are secretive deals woven into a complex web....Look at the history of Westfields and its past Directors