135
Overview
Sustainability
Business
Review
Portfolio
Details
Corporate
Governance &
Transparency
Financials &
Additional
Information
Ascott Residence Trust
Annual Report 2015
1 General
(continued)
(ii) Manager’s fees
(continued)
Divestment fee
The Manager is entitled under Clause 15.2.1 of the Trust Deed to receive a divestment fee of 0.5% of
the Enterprise Value of any real estate or real estate related asset disposed directly or indirectly by the
Trust, prorated if applicable to the proportion of the Trust’s interest.
The divestment fee is payable to the Manager in the form of cash. In the event that the Manager receives
a divestment fee in connection with a transaction with a related party, any such divestment fee shall be
paid in the form of Units to be issued by the Trust at the market price.
(iii) Fees under serviced residence management agreements
The serviced residence management fee for each property is agreed between the Group and the relevant
serviced residence management company as follows:
(a) each property (with the exception of properties located in Belgium, Spain and United Kingdom)
is charged:
• basic management fees of between 2.0% and 3.0% per annum of the total revenue of each
property; and
• incentive management fees of up to 10.0% per annum of gross operating profit of each property;
and
(b) each property located in Belgium, Spain and United Kingdom is charged:
• basic management fees of 3.0% per annum of the total revenue and 6.0% per annum of net
operating profit (“NOP”) of each property; and
• incentive management fees of 50% of any excess NOP achieved above the NOP hurdle of
each property.
