Annual Report 2007 - The Link REIT

72 The Link Real Estate Investment Trust Annual Report 2007
Connected Party Transactions
Syndicated Loan – The Hongkong and Shanghai Banking Corporation Limited was one of the mandated lead arrangers and is
one of the lenders of a HK$5 billion syndicated loan facility made available to The Link Finance Limited. The facility comprised
both a term loan and a revolving credit line and was partially drawn down in October 2006. The outstanding balance due to
The Hongkong and Shanghai Banking Corporation Limited in connection to this syndicated loan stood at HK$598,000,000 as at
31 March 2007.
There was no transaction entered into between The Link REIT and Wing Hang Bank Limited or associates of its group which are
also connected persons being members of the relevant banking group as defined in the Waivers granted.
Name of Relationship with Nature of Date of
Connected Person The Link REIT Transaction the Transaction Fee Charged
HK$’M
The Hongkong and Trustee’s associate Financial advisory 3-8/2006* Nil
Shanghai Banking
services
Corporation Limited
Lead manager 4/8/2006 3.3
and book-runner
for issuance of
guaranteed note
Lead arranger 4/8/2006 Nil
and lender of
syndicated loan
* A continuing transaction that started in March 2006 and lasted until the completion of the re-financing of the Bridging Loan in or about August 2006.
Confirmation by the Manager and the Trustee in respect of Corporate Finance
Transactions with HSBC Group
Each of the Manager and the Trustee confirms in respect of corporate finance transactions disclosure above that (i) each
transaction is carried out at arm’s length on normal commercial terms; (ii) the Trustee is not involved in the decision to enter
into any such transaction (including the selection of thefinancial adviser or underwriter of the transaction), subject only to its
duties of oversight under the REIT Code and the Trust Deed; and (iii) the general conditions applicable to the Waivers have
been complied with.
Agreed-upon Procedures Performed by the Auditors in Relation to Certain Connected
Party Transactions
Pursuant to the Waivers from strict compliance with the approval and disclosure requirements under Chapter 8 of the REIT
Code, the Manager has engaged the auditors of The Link REIT to perform certain factfinding procedures in accordance with
the Hong Kong Standard on Related Services 4400 "Engagements to Perform Agreed-Upon Procedures Regarding Financial
Information" issued by the Hong Kong Institute of Certified Public Accountants in respect of the connected party transactions
on the leasing of properties and corporatefinance transactions during the year under review. The auditors have performed
these procedures and reported their factualfindings to the Audit Committee of the Manager.