SEO Version
FORTERRA
ANNUAL REPORT 2013
NOTES TO THE
FINANCIAL STATEMENTS
73
1
DOMICILE AND ACTIVITY (CONTINUED)
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 (as defined in the Trust
Deed) 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).
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 2013.
When management fees are payable in Units, the issue prices will be determined based on
the volume weighted average traded price per unit for all trades done on the SGX-ST in the
ordinary course of trading for 10 business days immediately preceding the respective date of
issue of the new units, or where the independent directors of the Trustee-Manager believe such
market price is not a fair reflection of the market price of a Unit, such amount as determined
by the independent directors of the Trustee-Manager at its discretion (after consultation with a
stockbroker), as being the fair market price of a Unit, provided that such issue price shall be not
less than the higher of the (i) market price (i.e. volume weighted average trade price for a Unit
for the last 10 business days) and (ii) current unit value on the last day of the relevant period in
which the relevant component of the management fees accrues.
Other fees
Pursuant to the Trust Deed, the Trustee-Manager is also entitled to the following:
•
An acquisition fee amounting to 1.0% of (i) the value of the underlying real estate (after
deducting the interest of any third party co-owners or co-participants) purchased by the
Trustee-Manager on behalf of the Trust, whether directly or indirectly; or (ii) the acquisition
price of any other asset forming a part of the Trust Property acquired by the Trustee-
Manager on behalf of the Trust. No acquisition fee is payable on the acquisition of the initial
portfolio of properties. Any payment to third party agents or brokers in connection with the
acquisition of any asset of the Trust shall be paid by the Trustee-Manager to such persons
out of the Trust Property of the Trust or the assets of the relevant special purpose vehicle,
and not out of the acquisition fee received or to be received by the Trustee-Manager.
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