ASCENDAS india trust ANNUAL REPORT 2014/15
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
For the financial year ended 31 March 2015
26.
Related party transactions
The Group has entered into several service agreements in relation to the management of the Trust and its property operations.
These agreements are entered into with the Trustee-Manager and Ascendas Services (India) Pte. Ltd. (the “Property Manager”),
which are companies that are controlled by a unitholder that has significant influence over the Group. The fee structures of
these services are as follows:
(a)
Trustee-Manager’s fees
(i)
Management fees
The Trustee-Manager is entitled under the Trust Deed to receive the following management fees:
– a Base Fee at the rate of 0.5% per annum of the value of the properties held by the Trust.
– a Performance Fee at the rate of 4% per annum of the net property income of the Trust.
(ii)
Postponement, reduction of fees
The Trustee-Manager may postpone the receipt of any fee (or any part of a fee) or charge a lower fee than
it is entitled to receive under the Trust Deed.
(iii)
Trustee fees
The Trustee-Manager is entitled to receive a trustee fee of up to 0.02% per annum of the value of the properties
held by the Trust.
(iv)
Acquisition / divestment fees
The Trustee-Manager is entitled to a fee upon the acquisition of an asset by any subsidiary calculated as 1%
of the acquisition value of the investment.
The Trustee-Manager is entitled to a fee upon the disposal / divestment of an asset by any subsidiary calculated
as 0.5% of the sale value of the investment.
(b)
Property Manager’s management fees
(i)
Property management services
For the property management services, the property owner will pay the Property Manager a fee calculated
based on 2% of the total property income of each property plus reimbursement of remuneration costs of the
personnel employed by the Property Manager who are deployed on-site at the properties to provide property
management services.
(ii)
Lease management services
For the lease management services, the property owner will pay the Property Manager a fee calculated based
on 1% of the total property income of each property.
(iii)
General management services
For the general management services, the property owner will pay an apportioned amount of the remuneration
cost of the centralized staff employed by the Property Manager for the purposes of providing general
management services, plus an administrative fee of 20% of such cost.
