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ParkwayLife REIT Annual Report FY2012
88
Notes to the Financial Statements
These notes form an integral part of the fnancial statements.
The fnancial statements were authorised for issue by the Manager and the Trustee on 20 March 2013.
1 General
Parkway Life Real Estate Investment Trust (the “Trust”) is a Singapore-domiciled unit trust constituted pursuant to
the trust deed dated 12 July 2007 (as amended) (the “Trust Deed”) between Parkway Trust Management Limited (the
“Manager”) and HSBC Institutional Trust Services (Singapore) Limited (the “Trustee”), governed by the laws of the
Republic of Singapore. On 12 July 2007, the Trust was declared as an authorised unit trust scheme under the Trustees
Act, Chapter 337. The Trustee is under a duty to take into custody and hold the assets of the Trust and its subsidiaries
(the “Group”) in trust for the holders (“Unitholders”) of units in the Trust (the “Units”).
On 23 August 2007 (“Listing Date”), the Trust was admitted to the Offcial List of the Singapore Exchange Securities
Trading Limited (“SGX-ST”) and was included under the Central Provident Fund (“CPF”) Investment Scheme on the
same date.
At Listing Date, the Trust had invested in and owned an initial portfolio of three private hospitals in Singapore comprising
The Mount Elizabeth Hospital Property, The Gleneagles Hospital Property, and The Parkway East Hospital Property
(collectively, the “Hospital Properties”). The Hospital Properties are leased to a related corporation of the Manager of
the Trust, Parkway Hospitals Singapore Pte. Ltd., pursuant to three separate master lease agreements.
The principal activity of the Trust is to invest primarily in income-producing real estate and/or real estate-related assets in
the Asia-Pacifc region (including Singapore) that are used primarily for healthcare and/or healthcare-related purposes
(including but not limited to, hospitals, healthcare facilities and real estate and/or real estate assets used in connection
with healthcare research, education, and the manufacture or storage of drugs, medicine and other healthcare goods
and devices), whether wholly or partially owned, and whether directly or indirectly held through the ownership of special
purpose vehicles whose primary purpose is to own such real estate. The principal activities of the subsidiaries are those
of investment holding of healthcare related properties.
The Trust has entered into several service agreements in relation to the management of the Trust and its property
operations. The fee structures of these services are as follows:
(A) Trustee’s fee
Pursuant to the Trust Deed, the Trustee’s fee shall not exceed 0.03% per annum of the value of the gross assets
of the Group (“Deposited Property”), subject to a minimum of $10,000 per month or such higher percentage as
may be fxed by an Extraordinary Resolution at a meeting of Unitholders of the Trust. The Trustee’s fee is payable
out of the Deposited Property on a monthly basis, in arrears. The Trustee is also entitled to reimbursement of
expenses incurred in the performance of its duties under the Trust Deed.
Based on the current agreement between the Manager and the Trustee, the Trustee’s fee is charged on a scaled
basis of up to 0.03% per annum of the value of the Group’s Deposited Property.