FRASERS HOSPITALITY TRUST ANNUAL REPORT 2015
143
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL PERIOD FROM 20 JUNE 2014 (DATE OF CONSTITUTION) TO 30 SEPTEMBER 2015
1.
GENERAL (CONT’D)
(i)
Property Management fees
Property management fees payable to Serviced Residence operators, which are companies controlled by
a substantial Stapled Securityholder, comprise:
(i)
Management Services Fees
Pursuant to the Serviced Residences Management Agreements, the management services fees
are as follows:
(I)
a base management fee of 1.0% per annum of the gross operating revenue of the Serviced
Residences;
(II)
a marketing fee of 1.0% per annum of the gross operating revenue of the Serviced
Residences; and
(III)
an incentive of 8.0% per annum of gross operating profit of the Serviced Residences.
(ii)
Trademark Licence Fees
Pursuant to the Serviced Residences Licence Agreement, trademark licence fee is 1.0% per annum
of the gross operating revenue of the Serviced Residences.
The Serviced Residences operators may receive the management services and trademark licence fees in
cash or Stapled Securities or a combination of both (as the REIT Manager or Trustee-Manager may elect).
(iii)
Technical Services Fees
Pursuant to the Master Technical Services Agreement and the Individual Technical Services
Agreement, the technical services fees will be an amount mutually agreed upon subject to a cap of
United States Dollar (“USD”) 1,500 per Serviced Residence unit which is exclusive of reimbursable
expenses. The technical services fees shall be payable when technical services relating to
conceptualising, planning, designing, decorating, furnishing and equipping Serviced Residences
are provided in connect with any development, re-development, refurbishment, retrofitting,
addition and alteration and renovation works.
(j)
Trustee-Manager fees
The Trustee-Manager is entitled to the following fees:
(i)
a management fee comprising a Base Fee of 0.3% per annum of the value of the FH-BT’s Trust
Property and Performance Fee of 5.5% per annum of the Distributable Income of FHT in the
relevant financial period, payable in the event that FH-BT becomes active; and
There should be no double-counting of fees. In the event that both the Trustee-Manager and the
REIT Manager are entitled to the Performance Fee, such fees payable to both the Trustee-Manager
and the REIT Manager will be apportioned based on the respective proportionate contributions
of FH-REIT and FH-BT in the Performance Fee. For the avoidance of doubt, the maximum
Performance Fee payable to both the Trustee-Manager and the REIT Manager collectively is 5.5%
per annum of the aggregate Distributable Income of FHT in the relevant financial year (calculated
before accounting for the Performance Fee).
(ii)
a trustee fee of a maximum of 0.1% per annum of the value of the FH-BT Trust Property, subject to
a minimum fee of SGD 10,000 per month provided that the value of the FH-BT Trust Property is at
least SGD 50.0 million, payable in the event that FH-BT becomes active.
