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69 MACQUARIE MEAG PRIME REIT
ANNUAL REPORT 2007
(b) Management fees
Under the Trust Deed, the Manager is entitled to receive a base fee and a performance fee as follows:
i. Base fee
The Manager is entitled to receive a base fee of 0.5% per annum of the Value of Trust Property (excluding
GST) (“Base Fee”) or such higher percentage as may be fixed by an Extraordinary Resolution of a meeting of
unitholders.
The Value of Trust Property means:
(a) the value of all authorised investments of the Group other than real estate related assets;
(b) the value of real estate related assets of any entity held by the Group if such holding is less than 30.0%
of the equity of such entity; and
(c) where the Group invests in 30.0% or more of a real estate related asset of any entity, including any
class of equity, equity–linked securities and/or securities issued in real estate securitisation, the Group’s
proportionate interest in the value of the underlying real estate of the entity issuing the equity which
comprises the real estate related asset.
The Manager has opted to receive, for the years ended 31 December 2007 and 31 December 2006, 60.0%
of the Base Fee in respect of the Singapore properties in the form of units with the balance in cash. For
the overseas properties acquired by the Group during the year ended 31 December 2007, the Manager has
opted to receive 100.0% of the Base Fee in cash.
The Manager may opt to receive the Base Fee in respect of its Properties in cash or units or a combination of
cash and units (as it may determine).
The portion of the Base Fee payable in cash shall be payable monthly in arrears and the portion of the Base
Fee payable in the form of units shall be payable quarterly in arrears. If a trigger event occurs, resulting in
the Manager being removed, the Manager is entitled to be paid the Base Fee up to the day on which the
trigger event occurs.
ii. Performance fee
The Manager is entitled to a performance fee (“Performance Fee”) where the accumulated return
(comprising capital gains and accumulated distributions and assuming all distributions are re–invested in the
Trust) of the units (expressed as the “Trust Index”) in any six–month period ending 30 June or 31 December
(“Half–Year”) exceeds the accumulated return (comprising capital gains and accumulated distributions and
assuming re–investment of all distributions) of a benchmark index.
The Performance Fee is calculated in two tiers as follows:
• a Tier 1 Performance Fee equal to 5.0% of the amount by which the accumulated return of the Trust
Index exceeds the accumulated return of the benchmark index, multiplied by the equity market
capitalisation of the Trust; and
• a Tier 2 Performance Fee which is applicable only where the accumulated return of the Trust Index
is in excess of 2.0% per annum (1.0% for each Half–Year) above the accumulated return of the
benchmark index. This tier of the fee is calculated at 15.0% of the amount by which the accumulated
return of the Trust Index is in excess of 2.0% per annum above the accumulated return of the
benchmark index, multiplied by the equity market capitalisation of the Trust.