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NOTES TO THE

FINANCIAL STATEMENTS

15 UNITHOLDER’S FUNDS (CONTINUED)

Capital management

The Trustee-Manager reviews the Group’s and the Trust’s capital structure regularly, which the

Group defines as total Unitholders’ funds. The Group uses a combination of debt and equity to fund

acquisition, property development and asset enhancement projects. The Trustee-Manager seeks to

maintain an optimal combination of debt and equity in order to minimise the cost of capital and

maximise returns to Unitholders.

The objectives of the Trustee-Manager are to:

(a) maintain a strong Statement of Financial Position by adopting and maintaining a target gearing

range;

(b) secure diversified funding sources from financial institutions and/or capital markets;

(c) adopt a proactive interest rate management strategy to manage risks related to interest rate

fluctuations; and

(d) manage the foreign currency exposure through hedging, where appropriate.

There were no changes in the Group’s approach to capital management during the year.

During the year, the Group has complied with all the externally imposed capital requirements.

16 UNITS IN ISSUE

Trust

2012

2011

Number of

units

Number of

units

At 1 January

253,619,717 256,275,067

Issue of units:

– Unit options exercised (Note 17)

–

375,000

– Distribution reinvestment

–

265,650

Units acquired and cancelled

–

(3,296,000)

At 31 December

253,619,717

On 21 June 2010, the Trustee-Manager in its capacity as Trustee-Manager of the Trust issued an

aggregate of 240,180,020 units representing undivided interests in the Trust to the shareholders

of China Real Estate Opportunities plc (“CREO”) for the acquisition of the entire issued and paid-

up share capital of CREO, comprising 48,036,004 shares in CREO. CREO was previously listed on

Alternative Investment Market of the London Stock Exchange (“AIM”). The Trust was constituted

in Singapore on 19 May 2010. Subsequently, the above mentioned acquisition of CREO by the Trust

in connection with the listing of the Trust on the mainboard of the SGX-ST was completed on 21

June 2010 by way of an introduction.