Page 60 - Forterra

58 FORTERRA
ANNUAL REPORT 2012
NOTES TO THE
FINANCIAL STATEMENTS
These notes form an integral part of the financial statements.
The financial statements were authorised for issue by the Board of Directors of the Trustee-Manager on
25 February 2013.
1 DOMICILE AND ACTIVITY
Forterra Trust (the “Trust”, formerly known as Treasury China Trust) is a Singapore-domiciled
business trust established pursuant to the Trust Deed dated 19 May 2010 by Forterra Real Estate
Pte. Ltd. (the “Trustee-Manager”, formerly known as Treasury Holdings Real Estate Pte. Ltd.). The
Trust Deed is governed by the laws of the Republic of Singapore. The Trustee-Manager is under
a duty to take into custody and hold the assets of the Trust held by it or through its subsidiaries
(collectively, the “Group”) in trust for the holders (“Unitholders”) of units in the Trust (the “Units”).
The Trust was formally admitted to the Official List of the Singapore Exchange Securities Trading
Limited (“SGX-ST”) on 21 June 2010.
The principal activity of the Trust is investment holding. The principal activities of the subsidiaries
are those relating to investment in, either directly or indirectly, real estate or real estate-related
assets in the People’s Republic of China (the “PRC”).
The Group has entered into service agreements with the Trustee-Manager in relation to management
of the Trust and its property operations. The fee structures for these services are as follows:
Trustee’s fee
Pursuant to the Trust Deed, the Trustee’s fees are based on 0.02% per annum of the value of the
assets of the Group (“Trust Property”). The Trustee’s fees are payable quarterly in arrears in the
form of cash to the Trustee-Manager.
Manager’s fee
Management fees
The Trustee-Manager is entitled under the Trust Deed to the following management fees:
(a) a base fee of 0.5% per annum of the value of the Trust Property of the Trust; and
(b) a performance fee of 4.0% per annum of the Net Property Income of the real estate held by the
Trust, whether directly or indirectly, in the relevant financial period (calculated based on the
currency in which the property income of such real estate is received and before accounting
for the performance fee in that financial period/year).
The base fee and performance fee are payable quarterly in arrears to the Trustee-Manager in the
form of cash and/or Units (as the Trustee-Manager may elect). The Trustee-Manager has elected
to receive the base fee and performance fee in cash for the year ended 31 December 2012.