SEO Version
FORTERRA
ANNUAL REPORT 2013
NOTES TO THE
FINANCIAL STATEMENTS
72
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 18 March 2014.
1
DOMICILE AND ACTIVITY
Forterra Trust (the “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”). 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”).
On 28 August 2013, Nan Fung International Holdings Limited (“Nan Fung”) completed its
acquisition, via its wholly-owned subsidiary, New Precise Holdings Limited (“New Precise”), of
68,268,322 existing units, equivalent to 26.90% of the units of the Trust in issue. Pursuant to a
put/call option agreement (the “Put/Call Option Agreement”) dated 22 July 2013, New Precise
completed the acquisition of a further 7,815,057 units, equivalent to 3.08% of the units of the Trust
in issue on 21 January 2014. As such, Nan Fung is deemed a controlling unitholder of the Trust.
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 financial statements of the Group as at and for the year ended 31 December 2013 comprise
the Trust and its subsidiaries.
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.
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