Disclosure
On Fees
Fees Payable by PLife REIT
The trust deed constituting PLife REIT dated 12 July 2007 (as amended, the “
Trust Deed
”) are binding on each Unitholder
of PLife REIT (“
Unitholder
”) (and persons claiming through such Unitholder) as if such Unitholder had been a party to the
Trust Deed and as if the Trust Deed contains covenants by such Unitholder to observe and be bound by the provisions
of the Trust Deed, and an authorisation by each Unitholder to do all such acts and things as the Trust Deed may require
Parkway Trust Management Limited (the “
Manager
”) and/or HSBC Institutional Trust Services (Singapore) Limited (the
“
Trustee
”) to do.
The Manager has covenanted in the Trust Deed to use its best endeavours to carry on and conduct its business in a
proper and efficient manner, ensure that PLife REIT is carried on and conducted in a proper and efficient manner, and to
conduct all transactions with or for PLife REIT at arm’s length and on normal commercial terms.
Under Clauses 15.1, 15.3, 15.4, 15.5 and 15.6 of the Trust Deed, the Manager is entitled to the following fees in return for
its services:
Fees payable by PLife REIT
Amount payable to the Manager
1 Management fee
Base Fee
0.3% per annum of the value of all the assets of PLife REIT, including
all its authorised investments for the time being held or deemed to be
held upon the trusts of the Trust Deed (“
Deposited Property
”).
Performance Fee
4.5% per annum of the net property income of PLife REIT for that
financial year.
Subject to the guidelines for real estate investment trusts issued
by the Monetary Authority of Singapore as Appendix 6 (“
Property
Funds Appendix
”) to the Code on Collective Investment Schemes
(“
CIS Code
”), the Base Fee and Performance Fee shall be paid to the
Manager in the form of cash and/or Units (as the Manager may elect
prior to each payment) out of the Deposited Property and in such
proportion as may be determined by the Manager. If in the form of
Units, 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 set out in
accordance with the Trust Deed.
2 Fee for acquisition of properties
Acquisition Fee
1.0% of the Enterprise Value of any real estate or real estate related
asset acquired directly or indirectly by PLife REIT, pro-rated, if
applicable, to the proportion of PLife REIT’s interest. For this
purpose, where the assets acquired by PLife REIT 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 PLife REIT and where the asset acquired by PLife
REIT is a real estate, “
Enterprise Value
” shall mean the value of the
real estate.
In the event that there is payment to third party agents or brokers in
connection with the acquisition, such payment shall be paid out of
the Deposited Property.
ParkwayLife REIT
Annual Report 2015
69
