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NOTES TO THE
FINANCIAL STATEMENTS
These notes form an integral part of the financial statements.
The financial statements were authorised for issue by the Manager and the Trustee on 5 March 2008.
1 General
Macquarie MEAG Prime Real Estate Investment Trust (the “Trust”) is a Singapore–domiciled unit trust
constituted pursuant to the trust deed dated 8 August 2005 and any amendments or modifications thereof
between Macquarie Pacific Star Prime REIT Management Limited (the “Manager”) and HSBC Institutional
Trust Services (Singapore) Limited (the “Trustee”), governed by the laws of the Republic of Singapore (“Trust
Deed”). On 8 August 2005, the Trust was declared an authorised unit trust scheme under the Trustees Act,
Chapter 337.
The Trust was formally admitted to the Official List of the Singapore Exchange Securities Trading Limited
(“SGX–ST”) on 20 September 2005 and was included under the Central Provident Fund (“CPF”) Investment
Scheme on 14 June 2005.
The principal activity of the Trust and its subsidiaries (the “Group”) is to invest primarily in prime real estate
used mainly for retail and office purposes, with the objective of delivering regular and stable distributions to
unitholders and to achieve long–term growth in the net asset value per unit.
The Trust has entered into several service agreements in relation to the management of the Group and its
operations. The fee structure of these services is as follows:
(a) Property Manager’s fee and leasing commission
The Property Manager is entitled to receive a fee of 3.0% per annum of gross revenue of the Singapore
Properties (excluding GST) for the provision of property management, lease management as well as
marketing and marketing co–ordination services. The Property Manager’s fee is to be paid on a monthly
basis in arrears.
The Property Manager is also entitled to receive leasing commission at the rates set out below when it
secures a tenant or a tenancy renewal:
(a) one month’s base rental for securing a tenancy of three years or more;
(b) two thirds of one month’s base rental for securing a tenancy of two years or more but less than three
years;
(c) one third of one month’s base rental for securing a tenancy of one year or more but less than two years;
(d) one quarter of one month’s base rental for securing a renewal of tenancy of three years or more;
(e) one eighth of one month’s base rental for securing a renewal of tenancy of two years or more but less
than three years; and
(f ) one twelfth of one month’s base rental for securing a renewal of tenancy of one year or more but less
than two years.
Property management fees of 5.0% per annum of gross revenue of the Japanese Properties and 0.8% per annum
of turnover rent of the Renhe Spring Zongbei Property in China, are paid to third parties on a monthly basis
in arrears.