Page 133 - ar2013.pdf

Notes to the Financial Statements
Year ended 31 March 2013
ANNUAL REPORT FY12/13 129
These notes form an integral part of the financial statements.
The financial statements were authorised for issue by the Manager and the Trustee on 31 May 2013.
1 General
Ascendas Real Estate Investment Trust (the “Trust”) is a Singapore-domiciled real estate investment trust constituted pursuant to
the trust deed dated 9 October 2002 between Ascendas Funds Management (S) Limited (the “Manager”) and HSBC Institutional
Trust Services (Singapore) Limited (the “Trustee”), as supplemented and amended by the First Supplemental Deed dated 16 January
2004, the Second Supplemental Deed dated 23 February 2004, the Third Supplemental Deed dated 30 September 2004, the
Fourth Supplemental Deed dated 17 November 2004, the Fifth Supplemental Deed dated 20 April 2006 and as sanctioned by
Extraordinary Resolutions obtained at a meeting of Unitholders duly convened and held on 28 June 2007 and as restated by the First
Amending and Restating Deed dated 11 June 2008, as amended by the Seventh Supplemental Deed dated 22 January 2009, the
Eighth Supplemental Deed dated 17 September 2009, the Ninth Supplemental Deed dated 31 May 2010, the Tenth Supplemental
Deed dated 22 July 2010 and the Eleventh Supplemental Deed dated 14 October 2011 (“Trust Deed”).
The Trust was formally admitted to the Official List of the Singapore Exchange Securities Trading Limited (“SGX-ST”) on
19 November 2002 and was included under the Central Provident Fund (“CPF”) Investment Scheme on 15 October 2002.
The principal activity of the Trust is to invest in a diverse portfolio of properties and property related assets with the primary objective
of achieving an attractive level of return and long-term capital growth. The principal activities of the subsidiaries are set out in Note 9.
The consolidated financial statements relate to the Trust and its subsidiaries (the “Group”).
The Trust has entered into several service agreements in relation to the management of the Trust and its property operations.
As approved by the Unitholders of the Trust during the Extraordinary General Meeting held on 28 June 2012, the Trust has entered
into a new property management agreement (“PMA2012”) for the properties located in Singapore with effect from 1 October 2012,
a China property management agreement (“CPMA2012”) for properties located in the PRC with effect from 1 July 2012 and a lease
management agreement for all properties with effect from 1 July 2012 (“LMA2012”).
The previous property management agreement (“PMA2002”) for properties located in Singapore which was entered into with
Ascendas Services Pte Ltd (“ASPL”) on 10 October 2002 had expired on 18 November 2012.
The fees structures of these services are as follows:
(a) Trustee’s fee
Trustee’s fee shall not exceed 0.25% per annum of the value of all the gross assets of the Group (“Deposited Property”)
(subject to a minimum of $10,000 per month) or such higher percentage as may be fixed by an Extraordinary Resolution
of a meeting of Unitholders. Based on the current agreement between the Manager and the Trustee, the Trustee charges
0.03% per annum of the Deposited Property. The Trustee’s fee is payable out of the Deposited Property of the Group
monthly in arrears. The Trustee is also entitled to reimbursement of expenses incurred in the performance of its duties under
the Trust Deed.