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Notes to the financial statements
(iii)
(iv)
an acquisition fee of 1.0% of the purchase price of investment property acquired by the Trustee
on behalf of A-REIT.
a development management fee, not exceeding 3.0% of the total project cost incurred in
development projects undertaken by A-REIT. In cases where the market pricing for comparables
services is materially lower, the Manager will reduce the development management fees to less
than 3.0%. In addition, when the estimated total project cost is greater than $100.0 million, the
Trustee and the Manager’s independent directors will first review and approve the quantum of the
development management fee.
With effect from 19 November 2007, the Manager has elected to receive 20.0% of the base management
fees in units and 80.0% in cash for all properties.
The performance fee is paid in units issued at the prevailing market price (as defined in the Trust Deed)
at the time of issue of the units. The Manager may elect at any time after the acquisition of the relevant
property to receive performance fees in cash and/or units, in such proportion as may be determined by
the Manager. The Manager has elected to receive 100% of the performance fee in the form of cash for
the financial year ended 31 March 2009.
The cash component of the base management fees will be paid monthly in arrears and the units
component will be paid on a six-monthly basis in arrears. The performance fee will be paid within 60
days of the last day of every financial year.
(c)
Fees under the property management agreement
(i)
Property management services
For the property management services, A-REIT will pay Ascendas Services Pte Ltd (the “Property
Manager”), for each Fiscal Year (as defined in the Property Management Agreement), a fee of
2.0% per annum of the gross revenue of each property, managed by the Property Manager.
(ii)
Lease management services
For lease management services, A-REIT will pay the Property Manager, for each Fiscal Year, a fee
of 1.0% per annum of the gross revenue of each property.
In addition, in relation to the services provided by the Property Manager in respect of property
tax objections submitted to the tax authorities on any proposed annual value of a property, the
Property Manager is entitled to the following fees if as a result of such objections, the proposed
annual value is reduced resulting in property tax savings for the property:
• where the proposed annual value is $1.0 million or less, a fee of 7.5% of the property tax
savings;
• where the proposed annual value is more than $1.0 million but does not exceed $5.0
million, a fee of 5.5% of the property tax savings; and
• where the proposed annual value is more than $5.0 million, a fee of 5.0% of the property
tax savings.
The above mentioned fee is a lump sum fixed fee based on the property tax savings calculated
on a 12-month period.
8th Annual Report FY09/10
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