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<strong>Annual</strong> <strong>Report</strong> <strong>2007</strong><br />
<strong>The</strong> <strong>Link</strong> Real Estate Investment Trust<br />
71<br />
Connected Party Transactions<br />
Lease Transactions with Connected Persons<br />
<strong>The</strong> <strong>Link</strong> <strong>REIT</strong> has during the year entered into tenancy contracts with HSBC Group for leases of retail shops and space for the<br />
installation of ATMs at various properties of <strong>The</strong> <strong>Link</strong> <strong>REIT</strong>.<br />
Connected Party Transactions – Lease Transactions Under Which the <strong>Annual</strong> Rent Exceeds<br />
HK$1 Million<br />
Name of Connected Relationship with Nature of<br />
Person (Tenant) <strong>The</strong> <strong>Link</strong> <strong>REIT</strong> the Transaction Material Terms <strong>Annual</strong> Income (1)<br />
HK$’M<br />
<strong>The</strong> Hongkong and Trustee’s associate Tenancy for shop Term of 2 years 2.2<br />
Shanghai Banking No. T036-T038 at and expires on<br />
Corporation Limited Lok Fu 31/8/<strong>2007</strong><br />
Shopping Centre<br />
Hang Seng Bank Limited Trustee’s associate Tenancy for shop Term of 8 months<br />
No. S31D at and expires on 1.2<br />
Lok Fu 30/9/<strong>2007</strong><br />
Shopping Centre<br />
(1) <strong>The</strong> annual income stated herein refers to the rental income that would have been received for a 12-month period or until expiry if shorter than 12 months in<br />
accordance with the tenancy agreement.<br />
Connected Party Transactions with Relevant Banking Groups in the Ordinary Course of<br />
Business for Banking Services<br />
<strong>The</strong> <strong>Link</strong> <strong>REIT</strong> and its subsidiaries have engaged <strong>The</strong> Hongkong and Shanghai Banking Corporation Limited, the indirect holding<br />
company of the Trustee, to provide in the ordinary course of business, banking andfinancial services, namely, bank deposit,<br />
MPF and medical benefits for staff, during the year under review.<br />
<strong>The</strong> Hongkong and Shanghai Banking Corporation Limited and Hang Seng Bank Limited were the lenders to <strong>The</strong> <strong>Link</strong> Finance<br />
Limited, an indirect and wholly owned subsidiary of <strong>The</strong> <strong>Link</strong> <strong>REIT</strong>, pursuant to a loan facility arranged for the acquisition of the<br />
property portfolio from the Hong Kong Housing Authority upon listing (the "Bridging Loan"). <strong>The</strong> Bridging Loan was fully repaid<br />
upon maturity in November 2006.<br />
Corporate Finance Transactions with HSBC Group<br />
Financial Advisory Services – <strong>The</strong> Hongkong and Shanghai Banking Corporation Limited providedfinancial advisory services to<br />
<strong>The</strong> <strong>Link</strong> <strong>REIT</strong> in relation to the refinancing of the Bridging Loan.<br />
Issuance of Guaranteed Notes – <strong>The</strong> Hongkong and Shanghai Banking Corporation Limited was the lead manager and bookrunner<br />
for a HK$1,400 million guaranteed notes issued by <strong>The</strong> <strong>Link</strong> Finance (Cayman) 2006 Limited, an indirect and wholly<br />
owned subsidiary of <strong>The</strong> <strong>Link</strong> <strong>REIT</strong>, in August 2006.
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