CORPORATE GOVERNANCE
For the avoidance of doubt, no Acquisition Fee shall be paid when the Manager receives the Development Management
Fee for a development project.
In accordance with clause 15.6 of the Trust Deed, the Development Management Fee is payable in equal monthly
instalments over the construction period of each development project based on the Manager’s best estimate of the total
project costs and construction period and, if necessary, a final payment of the balance amount when the total project
costs is finalised and shall be paid to the Manager in the form of cash.
vi.
Lease Management Services
Under Clause 8.2 of the Lease Management Agreement entered into between the Trustee and the Manager on 1 July 2012,
the Manager or its nominees are entitled to a fee for performing lease management services for A-REIT’s properties located
in Singapore and China calculated at 1.0% per annum of the Adjusted Gross Revenue of each property.
Pursuant to Clause 8.3 of the Lease Management Agreement, the Manager is also entitled to commissions in relation to
the renewal of leases as well as new take-up of space by an existing tenant or where space is taken up by a new tenant
introduced by an existing tenant. These commissions are computed based on a certain number of months of gross rent
depending on the length of tenancy secured. The Manager believes that having longer lease tenancies will be beneficial
to Unitholders as it provides greater certainty and predictability of A-REIT’s income stream. Hence, lease commissions
are charge on a tiered basis to incentivise the Manager or its Nominees to sign longer term leases.
The lease management fees are payable every month in cash.
The rationale for the fees under the lease management services agreement is to motivate and compensate the Manager
or its nominees for the time, effort and costs incurred in its duties including but not limited to, engaging the tenants and
maintaining operational and financial data systems relating to lease management.
vi.
Strategic Management Fee
Under Clause 5.2 of the Strategic Management Agreement entered into between the Manager, Perpetual Corporate
Trust Limited as trustee of Ascendas REIT Australia
1
(the “
MIT
”
1
and the trustee of the MIT, the “
MIT Trustee
”) and
Ascendas Funds Management (Australia) Pty Ltd
2
(“
AFMA
”
2
) on 18 November 2015, AFMA or its nominees are entitled
to one per cent per annum of the Adjusted Gross Revenue of the Australian properties from time to time acquired or
developed by the MIT for which the following services are provided by AFMA:
(i)
strategic management in relation to the Australian Properties such as proactive portfolio management, engagement
with tenants and reviewing the tenants’ business plans to facilitate their growth and expansion needs;
(ii)
supervising and providing instructions to the third-party licensed real estate agents who will be providing the
property management services in respect of the Australian Properties; and
(iii)
providing contract administration functions (including the management of billing functions) in relation to the
various property management agreements entered into between the relevant Sub-Trusts (as defined herein) and
the relevant third-party licensed real estate agents, to the extent that the provision of such services do not require
AFMA to hold the relevant Australian estate agents licence (the “
Strategic Management Services
”).
1
The MIT is wholly-owned (directly and indirectly) by A-REIT.
2
AFMA is a wholly-owned subsidiary of the Manager.
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A-REIT ANNUAL REPORT
2015/2016
