216
Ascott Residence Trust
Annual Report 2015
35 Commitments
(continued)
(b) Operating leases as lessor
The Group leases out some of its serviced residence properties on long term arrangements. The leases
have tenure ranging from four to 19 years, with options to renew for some of the leases. The operating
lease receivables are based on the fixed component of the rent receivable under the lease agreements,
adjusted for increases in rent where such increases have been provided for in the agreements.
Non-cancellable operating lease rentals are receivable as follows:
Group
Trust
2015
$’000
2014
$’000
2015
$’000
2014
$’000
Within 1 year
58,332
64,700
7,150
7,150
After 1 year but within 5 years
100,579 167,091
5,303
12,453
After 5 years
61,882
85,208
–
–
220,793 316,999
12,453
19,603
(c) Operating leases as lessee
The Group leases the land on which two of the serviced residence properties are constructed.
The leases have an initial tenure of 24 years and 25 years. The operating lease payables are based on
the fixed component of the rent payable under the lease agreements, adjusted for increases in rent where
such increases have been provided for in the agreements.
Future minimum lease payments for the Group on non-cancellable operating leases are as follows:
Group
2015
$’000
2014
$’000
Within 1 year
9,590
1,113
After 1 year but within 5 years
39,601
5,683
After 5 years
194,470
–
243,661
6,796
(d) DBS Trustee Limited, as trustee of the Trust, entered into a sale and purchase agreement for the purchase of a
new serviced residence property, to be developed on the site on which Somerset Grand Cairnhill Singapore
was previously located, for a consideration of $405.0 million. A deposit of $20.3 million was made on
31 December 2013 and the remaining balance of $384.7 million is expected to be paid in 2017 and 2018.
Notes to the Financial Statements
Year ended 31 December 2015
