Page 91 - ar2012

Annual Report FY2012 ParkwayLife REIT
89
1 General (cont’d)
(B) Manager’s management fees
Pursuant to the Trust Deed, the Manager is entitled to receive management fees comprising the base fee and
performance fee as follows:
(i) A base fee of 0.3% per annum of the value of the Deposited Property; and
(ii) A performance fee of 4.5% per annum of the net property income of the Group.
The base fee and performance fee is payable to the Manager in the form of cash and/or units (as the Manager may
elect prior to each payment) and in such proportion as may be determined by the Manager.
Where the management fees are payable in the form of units, such payment shall be made out quarterly in arrears
and the Manager shall be entitled to receive such number of units as may be purchased with the relevant amount
of the management fee attributable to the relevant period at an issue price equal to the market price.
Where the management fees are payable in the form of cash, the portion of the base fee and performance fee
payable in cash shall be payable monthly and quarterly in arrears, respectively.
Since the Listing Date, the Manager has elected to receive 20% of the base and performance fees in the form of
units and 80% in the form of cash. With effect from the fnancial year ended 31 December 2011, the Manager has
elected to receive 100% of the base and performance fees in the form of cash.
Any increase in the maximum permitted amount or any change in the structure of the Manager’s management
fees must be approved by an Extraordinary Resolution at a meeting of Unitholders of the Trust duly convened and
held in accordance with the provisions of the Trust Deed. In addition to the management fees, the Manager is
entitled to the following fees (excluding the Hospital Properties for the duration of the master lease agreements):
(i) A fee of 2.0% per annum of the revenue of the real estate held directly or indirectly by the Trust and managed
by the Manager, for property management services provided by the Manager;
(ii) A fee of 1.0% per annum of the revenue of the real estate held directly or indirectly by the Trust and managed
by the Manager, for lease management services provided by the Manager;
(iii) Commissions as set out below for securing new leases or renewal of leases for those real estate which are
not leased to a master lessee under a master lease agreement, pursuant to marketing services provided by
the Manager:
(a) One month’s gross rent inclusive of service charge, for securing a lease of three years or less;
(b) Two months’ gross rent inclusive of service charge, for securing a lease of more than three years;
(c) Half month’s gross rent inclusive of service charge, for securing a renewal of lease of three years or
less; and
(d) One month’s gross rent inclusive of service charge, for securing a renewal of lease of more than three
years.