Elite UK REIT (SGX:MXNU) entered into a new property management agreement with Elite Real Estate Services UK, according to a filing with the Singapore Exchange on Tuesday.

Shares of the REIT were down over 3% in recent trading.

The agreement, which is part of the REIT's acquisition of government lease properties in the UK, will run for five years, expiring on June 19, 2030.

Under the deal, the REIT will pay a property management fee of 2% per year from the gross revenue of the new property, a lease management fee of 1% per year from the gross revenue and marketing services commissions for securing or renewing leases from 0.5 to 2.4 months' gross effective rent.

Additionally, the REIT will also receive project management services fee for the development or redevelopment of the property, ranging from 1.5% to 3.0% of the construction cost.