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FINANCIALS
101
Notes tothe
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 29 August 2017.
1.
General
Starhill Global 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 YTL Starhill Global 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 approved to be included under the Central Provident Fund (“CPF”) Investment Scheme on
14 June 2005.
For financial reporting purpose, Starhill Global Real Estate Investment Trust is regarded as a subsidiary of YTL Corporation
Berhad. Accordingly, the ultimate holding company is Yeoh Tiong Lay and Sons Holdings Sdn Bhd, which is incorporated
in Malaysia.
The principal activity of the Trust and its subsidiaries (the “Group”) is to invest primarily in prime real estate used mainly for
retail and/or 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 significant service agreements in relation to the management of the Group and its
operations. The fee structure of these services is as follows:
(a) Property management fees and leasing commission
YTL Starhill Global Property Management Pte Ltd (the “Property Manager”) is entitled to receive a fee of 3.0%
per annum of gross revenue of the Wisma Atria Property and Ngee Ann City Property (“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:
(i)
one month’s base rental for securing a tenancy of three years or more;
(ii)
two thirds of one month’s base rental for securing a tenancy of two years or more but less than three years;
(iii)
one third of one month’s base rental for securing a tenancy of one year or more but less than two years;
(iv)
one quarter of one month’s base rental for securing a renewal of tenancy of three years or more;
(v)
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
(vi)
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 also include fees payable mainly to third party property managers of the Australia
Properties and Japan Properties.
(b) Management fees
Management fees include fees payable to the Manager, third party asset manager of the Japan Properties, as well
as servicer of the Malaysia Properties.
Under the Trust Deed, the Manager is entitled to receive a base fee and a performance fee as follows:
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.