Notes to The
Financial Statements
Year ended 31 December 2015
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 any marketing services
commission payable to such third party agent, and the Manager will be entitled to a marketing
service commission of:
(a)
2.4 months’ gross rent inclusive of service charge for securing or renewal of a lease of more
than three years; and
(b)
1.2 months’ gross rent inclusive of service charge for securing or renewal of a lease of three
years or less.
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 services, 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 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.
(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. Units representing the divestment fee or any part thereof will be issued at
an issue price on a similar basis as management fees. 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.
97
ParkwayLife REIT
Annual Report 2015
