CORPORATE GOVERNANCE
Pursuant to Clause 5.4 of the Strategic Management Agreement, to the extent that the fees paid to AFMA under the
Asset Management Agreement exceeds the fees charged by the third-party licensed real estate agent (the “
Licensed
Real Estate Agent Fees
”) and borne by AFMA, thus resulting in a net positive balance to AFMA (the “
Excess
”), the
Strategic Management Fees paid to AFMA under the Strategic Management Agreement shall be reduced such that the
aggregate fees payable to AFMA under both the Strategic Management Agreement and Asset Management Agreement
will not exceed one per cent per annum of the Adjusted Gross Revenue of the Australian properties from time to time
acquired or developed by the MIT.
Pursuant to Clause 5.3 of the Strategic Management Agreement, the Strategic Management Fees are payable monthly
in arrears in cash.
The rationale for the Strategic Management Fees is to compensate AFMA or its nominees for the time, effort and costs
incurred in its performance of the Strategic Management Services.
viii.
Asset Management Fee
Under Clause 4.1 of the Asset Management Agreement entered into between AFMA, the Trust Company (Australia) Ltd,
in its capacity as trustee of the wholly-owned trust in Australia established by the MIT by the name of “Ascendas Logistics
Trust” and the trustees of the various wholly-owned intermediate sub-trusts and property-holding sub-trusts (collectively,
the “Sub-Trusts”) holding the Australian properties on 18 November 2015, AFMA or its nominees are entitled to fees for
providing asset management services to the Sub-Trusts, which includes retaining the services of one or more third-party
licensed real estate agents and providing contract administration in respect of such property management agreements
with the licensed real estate agents. As mentioned above, under both the Strategic Management Agreement and the
Asset Management Agreement, AFMA or its nominees are effectively entitled to an aggregate fee of one per cent per
annum of the Adjusted Gross Revenue of the Australian properties for which AFMA provides Strategic Management
Services.
Pursuant to Clause 4.2 of the Asset Management Agreement, the Asset Management Fees are payable monthly in arrears
in cash.
The rationale for the Asset Management Fees is to compensate AFMA or its nominees for the time, effort and costs
incurred in its performance of the Strategic Management Services at the operational Sub-Trusts level.
.113
A-REIT ANNUAL REPORT
2015/2016
