Notes to the financial statements
Year ended 31 March 2016
1.
General (continued)
(c)
Fees under the property management agreements (for the Singapore and China properties) (continued)
(iii)
Project management services
For project management services, the Group will pay the Property Managers the following fees for the (i)
development or redevelopment (if not prohibited by the Property Funds Appendix or if otherwise permitted
by the Monetary Authority of Singapore), refurbishment, retrofitting and renovation works to a property
where submission to the relevant authorities for the approval of such works is required or (ii) routine
maintenance where the expenses for the routine maintenance of the property results in such expenses
being classified as capital expenditure under the Singapore Financial Reporting Standards (“FRS”):
•
a fee of 3.00% of the construction costs, where the construction costs are $2.0 million or less in
Singapore, or RMB2.0 million or less in the PRC;
•
a fee of 2.15% of the construction costs, where the construction costs exceed $2.0 million but do
not exceed $12.0 million in Singapore, or exceed RMB2.0 million but do not exceed RMB12.0
million in the PRC;
•
a fee of 1.45% of the construction costs, where the construction costs exceed $12.0 million but do
not exceed $40.0 million in Singapore, or exceed RMB12.0 million but do not exceed RMB40.0
million in the PRC;
•
a fee of 1.40% of the construction costs, where the construction costs exceed $40.0 million but do
not exceed $70.0 million in Singapore, or exceed RMB40.0 million but do not exceed RMB70.0
million in the PRC;
•
a fee of 1.35% of the construction costs, where the construction costs exceed $70.0 million but do
not exceed $100.0 million in Singapore, or exceed RMB70.0 million but do not exceed RMB100.0
million in the PRC; and
•
a fee to be mutually agreed by the parties, where the construction costs exceed $100.0 million in
Singapore, or exceed RMB100.0 million in the PRC.
For purpose of calculating the fees payable to the Property Managers, construction costs means all
construction costs and expenditure valued by the quantity surveyor engaged by the Group for the project,
but excluding development charges, differential premiums, statutory payments, consultants’ professional
fees and goods and services tax.
.148
A-REIT ANNUAL REPORT
2015/2016
