Notes to the financial statements
Year ended 31 March 2016
1.
General (continued)
(d)
Fees under the lease management agreement (for the Singapore and China properties)
(i)
Lease management services
For lease management services, the Group will pay the Manager or its nominees (as the Manager may
direct), a fee of 1.0% per annum of the adjusted gross revenue of each property. In addition to the above
fee, the Group will pay the Manager or its nominees the following fees, subject to a refund of 50.0% of
the commission paid to the Manager or its nominees if the tenancy is prematurely terminated within six
months of the commencement of the tenancy. If the tenant fully compensates the Group for the pre-
termination (taking into account the loss of income and related expenses), the Manager or its nominees
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 Manager or its nominees would be pro-rated based
on the unrecovered loss divided by the aggregate total loss multiplied by 50.0% of the commission paid.
In relation to a tenancy which is renewed, the Group will pay the Manager or its nominees, the following fees:
•
pro-rated based on 0.5 month’s gross rent inclusive of service charge for securing a tenancy of six
months or more but less than one year;
•
0.5 month’s gross rent inclusive of service charge for securing a tenancy of one year or more but less
than or equivalent to three years;
•
pro-rated based on 1.0 month’s gross rent inclusive of service charge for securing a tenancy of more
than three years but less than five years;
•
1.0 month’s gross rent inclusive of service charge for securing a tenancy of five years; and
•
pro-rated based on 1.0 month’s gross rent inclusive of service charge for securing a tenancy of more
than five years, provided that the commission payable shall not exceed a sum equivalent to one and
a half months’ gross rent inclusive of service charge.
In relation to any new take-up of space by an existing tenant or where the space is taken up by a new tenant
introduced by an existing tenant, the Group will pay the Manager or its nominees, the following fees:
•
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; and
•
pro-rated based on 2.0 months’ gross rent inclusive of service charge for securing a tenancy of more
than five years, provided that the commission payable shall not exceed a sum equivalent to three
months’ gross rent inclusive of service charge.
.150
A-REIT ANNUAL REPORT
2015/2016
