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Ascott Residence Trust
Annual Report 2015
1 General
(continued)
(ii) Manager’s fees
(continued)
Management fees
(continued)
(b) an annual performance fee of:
• base performance fee of 4.0% per annum of the Group’s share of gross profit for each financial
year; and
• in the event that the Group’s share of gross profit increases by more than 6.0% annually,
an outperformance fee of 1.0% of the difference between the Group’s share of that financial
year’s gross profit and 106% of the Group’s share of the preceding year’s gross profit.
The management fees payable in cash and in the form of Units shall be payable quarterly in arrears.
When management fees are payable in Units, the issue prices will be determined based on the volume
weighted average traded price per Unit for all trades done on SGX-ST in the ordinary course of trading
for 5 business days immediately preceding the respective date of issue of the new Units, or where the
Manager believes such market price is not a fair reflection of the market price of a Unit, such amount as
determined by the Trustee at its discretion (after consultation with a stockbroker appointed by the Trustee)
upon request by the Manager to review the market price of a Unit, as being the fair market price of a Unit.
Acquisition fee
Pursuant to Clause 15.2.1 of the Trust Deed, the Manager is entitled to receive the following acquisition
fees:
(a) an acquisition fee of 1.0% of the Enterprise Value of any real estate or real estate related asset
acquired directly or indirectly by the Trust, prorated if applicable to the proportion of the Trust’s
interest; and
(b) in the event that there is payment to third party agents or brokers in connection with the acquisition,
such payment shall be paid out of the Deposited Property, provided that the Manager shall charge
an acquisition fee of 0.5% instead of 1.0%.
Where assets acquired by the Trust are shares in a company whose primary purpose is to hold/own
real estate (directly or indirectly), Enterprise Value shall mean the sum of the equity value and the total
debt attributable to the shares being acquired by the Trust and where the asset acquired by the Trust is
a property, Enterprise Value shall mean the value of the property.
The Manager may opt to receive such acquisition fee in the form of cash or Units or a combination of
cash and Units as it may determine.
In the event that the Manager receives an acquisition fee in connection with a transaction with a related
party, any such acquisition fee shall be paid in the form of Units to be issued by the Trust at the market
price.
Notes to the Financial Statements
Year ended 31 December 2015
