Page 92 - ar2012

ParkwayLife REIT Annual Report FY2012
90
Notes to the Financial Statements
1 General (cont’d)
(B) Manager’s management fees (cont’d)
If a third party agent secures a tenancy, the Manager will be responsible for all marketing services
commissions payable to such third party agent, and the Manager will be entitled to a marketing service
commission of:
(a) 1.2 months’ gross rent inclusive of service charge for securing or renewal of a lease of three years or
less; and
(b) 2.4 months’ gross rent inclusive of service charge for securing or renewal of a lease of more than three
years.
The marketing services commission may be adjusted accordingly at the time of securing or renewal of a
lease by the Manager or a third party agent, to be consistent with and no higher than the prevailing market
rates of such marketing service commission in the country where the real estate is located.
(C) Manager’s acquisition and divestment fees
The Manager is entitled to receive the following acquisition fees and divestment fees:
(i) An acquisition fee of 1.0% of the Enterprise Value of any real estate or real estate related asset acquired
directly or indirectly by the Trust, prorated, if applicable, to the proportion of the Trust’s interest.
Where the assets acquired by the Trust are shares in a special purpose vehicle whose primary purpose is
to hold/own real estate (directly or indirectly), “Enterprise Value” shall mean the sum of the equity value and
the total net debt attributable to the shares being acquired by the Trust. Where the asset acquired by the
Trust is a real estate, “Enterprise Value” shall mean the value of the real estate.
In the event that there is a payment to be made to third party agents or brokers in connection with the
acquisition, such payment shall be paid out of the Deposited Property. Unless required under the Property
Funds Appendix to be paid in the form of units only, the Manager may opt to receive such acquisition fee
in the form of cash or units or a combination of cash and units as it may determine. Units representing the
acquisition fee or any part thereof will be issued at an issue price on a similar basis as management fees.
In relation to the Hospital Properties acquired on 23 August 2007, no acquisition fee was payable. In the
event that the Manager receives an acquisition fee in connection with a transaction with a related party, any
such acquisition fee shall be paid in the form of units to be issued by the Trust at the market price.
(ii) A divestment fee of 0.5% of the Enterprise Value of any real estate or real estate related asset sold or
divested directly or indirectly by the Trust, pro-rated, if applicable, to the proportion of the Trust’s interest.
Unless required under the Property Funds Appendix to be paid in the form of units only, the Manager may
opt to receive such divestment fee in the form of cash or units or a combination of cash and units as it may
determine. The divestment fee is payable as soon as practicable after completion of the relevant divestment.
Any payment to third party agents or brokers in connection with the divestment of any real estate or real
estate related assets of the Trust shall be paid by the Trust. In the event the Manager receives divestment
fee in connection with a transaction with a related party, any such divestment fee shall be paid in the form of
units to be issued by the Trust at the market price.