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FINANCIALS
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(c) Acquisition and divestment fees
The Manager is entitled to receive an acquisition fee of 1.0% of the value of the real estate acquired. For any
acquisition made by the Group in Singapore, any payment to third party agents or brokers in connection with the
acquisition shall be borne by the Manager, and not additionally out of the Group. For any acquisition made by the
Group outside Singapore, any payment to third party agents or brokers shall be borne by the Group, provided that
the Manager shall charge an acquisition fee of 0.6% instead of 1.0%.
The Manager is entitled to receive a divestment fee of 0.5% of the value of the real estate divested. For any
divestment made by the Group in Singapore, any payment to third party agents or brokers in connection with the
divestment shall be borne by the Manager, and not additionally out of the Group. For any divestment made outside
Singapore, any payment to third party agents or brokers shall be borne by the Group, provided that the Manager
shall charge a divestment fee of 0.5% of the sale price. The Manager also receives acquisition fees and divestment
fees in instances other than an acquisition and divestment of real estate.
(d) Trustee’s fee
Under the Trust Deed, the Trustee’s fee shall not exceed 0.1% per annum of the value of the deposited property
(subject to a minimum of $8,000 per month excluding out of pocket expenses and GST) or such higher percentage
as may be fixed by an Extraordinary Resolution of a meeting of unitholders. The Trustee’s fee is payable out of the
deposited property of the Group on a monthly basis, in arrears. The Trustee is also entitled to reimbursement of
expenses incurred in the performance of its duties under the Trust Deed.
Based on the current agreement between the Manager and the Trustee, the Trustee’s fee is less than 0.1% per annum
of the value of the deposited property (subject to a minimum of $8,000 per month excluding out of pocket expenses
and GST).
2.
Basis of preparation
2.1 Statement of compliance
The financial statements have been prepared in accordance with the
Statement of Recommended Accounting Practice
(“RAP”) 7 “Reporting Framework for Unit Trusts”
issued by the Institute of Singapore Chartered Accountants (“ISCA”), the
applicable requirements of the Code on Collective Investment Schemes (“CIS Code”) issued by the Monetary Authority
of Singapore (“MAS”) and the provisions of the Trust Deed. RAP 7 requires that accounting policies adopted should
generally comply with the principles relating to recognition and measurement of the Singapore Financial Reporting
Standards (“FRS”).
2.2 Basis of measurement
The financial statements have been prepared on the historical cost basis, except as set out in the accounting
policies below.
2.3 Functional and presentation currency
These financial statements are presented in Singapore dollars, which is the functional currency of the Trust. All financial
information presented in Singapore dollars has been rounded to the nearest thousand, unless otherwise stated.
2.4 Use of estimates and judgements
The preparation of financial statements in conformity with RAP 7 requires the Manager to make judgements, estimates
and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses
The estimates and associated assumptions are based on historical experience and various other factors that are believed
to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying
amounts of assets and liabilities that are not readily apparent from other sources.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and any future periods affected.