30 RELATED PARTIES
For the purposes of these financial statements, parties are considered to be related to the Group
if the Group has the ability, directly or indirectly, to control the party or exercise significant
influence over the party in making financial and operating decisions, or vice versa. Related
parties may be individuals or other entities. The Manager is an indirect wholly-owned subsidiary
of a substantial Unitholder of the Trust.
In the normal course of the operations of the Trust, the Manager’s management fees and the
Trustee’s fees have been paid or are payable to the Manager and Trustee respectively.
During the financial year, other than those disclosed elsewhere in the financial statements, there
were the following significant related party transactions, which were carried out in the normal
course of business on arm’s length commercial terms:
Group
Trust
2014
2013
2014
2013
$’000
$’000
$’000
$’000
Acquisition fees paid/payable to the
Manager
5,028
3,063
2,478
1,831
Divestment fee payable to the Manager
42
–
–
–
Rental income received/receivable from
related corporations of the Manager
(301)
(138)
(33)
(63)
Rental income received/receivable under
master lease arrangements from related
corporations of the Manager
(48,197)
(47,264)
(9,063)
(9,017)
Serviced residence properties
management fees paid/payable to
related corporations of the Manager
22,767
20,444
2,303
2,385
Service fee paid/payable to related
corporations of the Manager
14,851
12,813
2,147
1,994
Shortfall in net operating profit guarantee
amount received/receivable from related
corporations of the Manager
(431)
(1,806)
–
–
Termination compensation received from
a related corporation of the Manager
(649)
–
–
–
Waiver of non-trade amount owing to
a related corporation of the Manager
(2,530)
–
–
–
Yield protection income
received/receivable from a related
corporation of the Manager
(412)
(1,610)
(412)
(1,610)
Pursuing Growth | 185
