NOTES TO THE
FINANCIAL STATEMENTS
Year ended 31 December 2014
1
GENERAL (CONT’D)
(C) Manager’s acquisition and divestment fees (cont’d)
(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.
(D) Project management fees
The Property Manager is entitled to receive a project management fee for each project undertaken, for the
development or redevelopment (if not prohibited by the Property Funds Appendix or if otherwise permitted
by the Monetary Authority of Singapore (“MAS”)), the refurbishment, retrofitting and renovation of a property,
based on the capital expenditure of the project, amounting to:
(i)
5.0% of the capital expenditure of the project where the capital expenditure of the project is less
than $1.0 million; or
(ii)
3.0% of the capital expenditure of the project where the capital expenditure of the project is more
than or equal to $1.0 million.
For the purpose of calculating the fees payable to the Property Manager, “capital expenditure” means all
construction costs and expenditure valued by the quantity surveyor engaged by the Trustee for the project,
excluding development charges, differential premiums, statutory payments, consultants’ professional fees
and goods and services tax.
2
BASIS OF PREPARATION
2.1 Statement of compliance
The financial statements are prepared in accordance with the
recommendations of Statement of Recommended
Accounting Practice (“RAP”) 7 “Reporting Framework for Unit Trusts” issued by the Institute of Singapore Chartered
Accountants
and the applicable requirements of the Code on Collective Investment Schemes (“CIS Code”)
issued by the Monetary Authority of Singapore (“MAS”) and the provisions of the Trust Deed. RAP 7 requires
that accounting policies adopted should generally comply with the recognition and measurement principles of
Singapore Financial Reporting Standards (“FRS”).
103
A N N U A L R E P O R T 2 0 1 4
