FRASERS HOSPITALITY TRUST ANNUAL REPORT 2015
139
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL PERIOD FROM 20 JUNE 2014 (DATE OF CONSTITUTION) TO 30 SEPTEMBER 2015
1.
GENERAL
Frasers Hospitality Trust (“FHT”) is a stapled trust comprising Frasers Hospitality Real Estate Investment Trust
(“FH-REIT”) and its subsidiaries (collectively “FH-REIT Group”) and Frasers Hospitality Business Trust (“FH-BT”)
(collectively, the “Stapled Group”). [G4-17]
FH-REIT is a Singapore-domiciled real estate investment trust constituted in Singapore pursuant to the Trust
Deed dated 12 June 2014 which was amended by an amending and restating deed dated 20 June 2014
(collectively, the “FH-REIT Trust Deed”). The FH-REIT Trust Deed was entered between Frasers Hospitality Asset
Management Pte. Ltd. (the “REIT Manager”) and The Trust Company (Asia) Limited as trustee of FH-REIT (the
“REIT Trustee”). The REIT Trustee is under a duty to take into custody and hold the assets of FH-REIT in trust for
the Stapled Securityholders of FH-REIT.
FH-BT is a Singapore-domiciled business trust constituted in Singapore by a Trust Deed dated 20 June 2014
(“FH-BT Trust Deed”) and is managed by Frasers Hospitality Trust Management Pte. Ltd. (the “Trustee-Manager”).
The securities in each of FH-REIT and FH-BT are stapled together under the terms of a stapling deed dated 20
June 2014 entered into between the REIT Manager, the REIT Trustee and the Trustee-Manager (the “Stapling
Deed”) and cannot be traded separately. Each stapled security in FHT (the “Stapled Security”) comprises a unit of
FH-REIT (the “FH-REIT unit”) and a unit of FH-BT (the “FH-BT unit”).
FH-REIT’s and FH-BT’s first financial year financial statements cover the period from 20 June 2014, the date of
constitution as a real estate investment trust and a business trust respectively, to 30 September 2015.
FHT was formally admitted to the Official List of the Main Board of the Singapore Exchange Securities Trading
Limited (“SGX-ST”) on 14 July 2014 (the “Listing Date”).
The registered office of the REIT Manager and the Trustee Manager is located at 438 Alexandra Road, #21-00
Alexandra Point, Singapore 119958 and principal place of business is located at 491B River Valley Road, #16-01
Valley Point, Singapore 248373.
The principal activity of FH-REIT is to invest in income producing real estate in Singapore, Australia, United
Kingdom, Japan and Malaysia, used for hospitality purposes, with the primary objective of achieving an attractive
level of return from rental income and for long-term capital growth.
With the adoption of FRS 110
Consolidated Financial Statements
(which came into effect for annual periods
beginning on or after 1 January 2014), for financial reporting purposes, the Stapled Group is regarded as a
subsidiary of Frasers Centrepoint Limited.
Consequently, the penultimate and ultimate holding company are Frasers Centrepoint Limited and TCC Assets
Limited. The penultimate and ultimate holding company are incorporated in Singapore and the British Virgin
Islands respectively.
As at the reporting date, FH-BT is dormant.
FH-REIT has entered into several service agreements in relation to the management of FH-REIT and its properties
operations. The fee structures of these services are as follows:
(a)(i) REIT Manager’s management fees
Pursuant to the FH-REIT Trust Deed, the REIT Manager is entitled to management fees comprising a
Base Fee of 0.3% per annum of the value of the FH-REIT’s Deposited Property (as defined in the FH-REIT
Trust Deed) and Performance Fee of 5.5% per annum of the Distributable Income of FHT in the relevant
financial year (calculated before accounting for the FH-REIT Performance Fee and FH-BT Performance
Fee but after accounting for the FH-REIT Base Fee and the FH-BT Base Fee).
For the purpose of calculating the Base Fee, if FH-REIT holds only a partial interest in any FH-REIT
Deposited Property, such FH-REIT Deposited Property shall be pro-rated in proportion to the partial
interest held.
