N o t e s t o t h e f i n a n c i a l s t a t e m e n t s
Year ended 31 March 2015
1 General (continued)
(c)
Fees under the property management agreements
(i)
Property management services
For property management services, the Group will pay Ascendas Services Pte Ltd (“ASPL”) and Ascendas
China Pte Ltd (“ACPL”) (jointly the “Property Managers”), a fee of 2.0% per annum of the adjusted gross
revenue of each property, managed by the Property Managers, and in the event that the Property Managers
only manage such property for less than one calendar year, such amount to be pro-rated based on the
number of days which the Property Managers manage such property divided by the number of days in such
year.
(ii)
Marketing services
For marketing services, the Group will pay the Property Managers the following commissions, subject to a
refund of 50.0% of the commission paid to the Property Managers if the tenancy is prematurely terminated
within six months of the commencement of the tenancy. If the tenant fully compensates the Trust for the
pre-termination (taking into account the loss of income and related expenses), the Property Managers need
not refund 50.0% of the commission. If the tenant only compensates the Group for a proportion of the loss,
the amount refunded to the Group by the Property Managers would be pro-rated based on the unrecovered
loss divided by the aggregate total loss multiplied by 50.0% of the commission paid:
•
pro-rated based on 1.0 month’s gross rent inclusive of service charge for securing a tenancy of six
months or more but less than three years;
•
1.0 month’s gross rent inclusive of service charge for securing a tenancy of three years;
•
pro-rated based on 2.0 months’ gross rent inclusive of service charge for securing a tenancy of more
than three years but less than five years;
•
2.0 months’ gross rent inclusive of service charge for securing a tenancy of five years;
•
pro-rated based on 2.0 months’ gross rent inclusive of service charge for securing a tenancy of more
than five years with the terms of the lease subject to the prior approval of the Manager, provided that
the commission payable shall not exceed a sum equivalent to three months’ gross rent inclusive of
service charge;
•
if a third party agent secures a tenancy, the Property Managers shall pay to the third party agent the
same fees as stated above. Prior approval of the Manager is required for the Property Managers to
pay a third party agent a commission that is less than as set out above. For the avoidance of doubt,
there will not be double charging of commission payable to the third party agents and the Property
Managers as the commissions payable to such third party agents shall be paid out of the Property
Managers’ fee; and
•
an administrative charge of 20.0% of the commission is payable to the Manager or the Property
Managers in the case of a new lease take-up which involves a third party agent for the marketing
support and administrative services to be rendered either by the Manager or the Property Managers.
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