NOTES TO THE
FINANCIAL STATEMENTS
Year ended 31 December 2014
These notes form an integral part of the financial statements.
The financial statements were authorised for issue by the Manager and the Trustee on 20 March 2015.
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 Official 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-Pacific 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 set out in Note 5.
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 fixed 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.
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PA R K WAY L I F E R E I T
