Annual Report 2025 135 Notes to the Financial Statements 31 December 2025 (ii) Marketing and leasing services (continued) • where a third-party agent is involved, procure (on a best effort basis) the third-party agent to refund to the Trustee 50.0% of the commission paid to the third-party agent by Property Manager, provided that if the tenant fully compensates CLAR for the pre-termination (taking into account the loss of income and related expenses), the third-party agent need not refund 50.0% of its commission. If the tenant only compensates CLAR for a proportion of the loss, the amount to be refunded to CLAR by the third-party agent (which shall be procured by Property Manager on a best effort basis) would be pro-rated based on the unrecovered loss divided by the aggregate total loss multiplied by 50.0% of the commission paid to the third-party agent. (iii) Project management services For project management services, the Group will pay the Property Manager the following fees for the (i) routine refurbishment, retrofitting, renovation and reinstatement works of the property 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; • a fee of 2.15% of the construction costs, where the construction costs exceed $2.0 million but do not exceed $12.0 million; • a fee of 1.45% of the construction costs, where the construction costs exceed $12.0 million but do not exceed $40.0 million; • a fee of 1.40% of the construction costs, where the construction costs exceed $40.0 million but do not exceed $70.0 million; • a fee of 1.35% of the construction costs, where the construction costs exceed $70.0 million but do not exceed $100.0 million; and • a fee to be mutually agreed by the parties but not exceeding 1.35% of the construction costs, where the construction costs exceed $100.0 million. For purpose of calculating the fees payable to the Property Manager, construction costs means all construction costs and expenditure valued by the quantity surveyor engaged by the Trustee for the project (including but without limitation to development, redevelopment and capital expenditure works), but excluding development charges, differential premiums, statutory payments, consultants’ professional fees and goods and services tax (“GST”). 1. General (continued) 1.3 Fees under the property management agreements (for the Singapore properties) (continued)
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