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to motivate and compensate the
Manager for the time and effort
spent in sourcing, evaluating and
executing acquisitions that meet
Starhill Global REIT’s investment
criteria and increase long-term
returns for Unitholders. Additional
resources and costs incurred by the
Manager in the course of seeking
out new acquisition opportunities
include, but are not limited to, due
diligence efforts and man hours spent
in evaluating the transactions. The
Manager provides these services over
and above the provision of ongoing
management services with the aim of
enhancing long-term returns, income
sustainability and achieving the
investment objectives of Starhill
Global REIT.
The Acquisition Fee is calculated
at 1% of the value of the real estate
acquired and subject to the Property
Funds Appendix, shall be paid to the
Manager in the form of cash and/
or Units (as the Manager shall elect).
The Acquisition Fee is payable to the
Manager 14 days after the completion
of the relevant acquisition. Please refer
to page 103 for further details on the
Acquisition Fee.
As required by the Property Funds
Appendix, where an acquisition
constitutes an “interested party
transaction”, the Acquisition Fee
payable to the Manager will be in
the form of units which shall not be
sold within one year from the date of
issuance. This motivates the Manager
to ensure that any acquisitions from
interested parties perform and
contribute to Unitholders’ returns.
(iv) Divestment Fee
The Manager is entitled to a
Divestment Fee as set out in clause
15.3 of the Trust Deed. This is earned
by the Manager upon completion of a
divestment. This fee seeks to motivate
and compensate the Manager for
its efforts in maximising value for
Unitholders by selectively divesting
properties that have reached a stage
which offers limited scope for further
income growth and recycle capital
and optimise Starhill Global REIT’s
portfolio. The fee covers additional
costs and resources incurred by the
Manager, including but not limited
to, sourcing for buyers, due diligence
efforts and man hours spent in the
course of the transactions.
In accordance to clause 15.3 of the
Trust Deed, the Divestment Fee is
calculated at 0.5% of the value of the
real estate divested and subject to
the Property Funds Appendix, shall
be paid to the Manager in the form
of cash and/or units (as the Manager
may elect). The Divestment Fee
is payable as soon as practicable
after the completion of the
relevant divestment. Please refer
to page 103 for further details on
the Divestment Fee.
As required by the Property Funds
Appendix, where a divestment
constitutes an “interested party
transaction”, the Divestment Fee
payable to the Manager shall be in
the form of units, which shall not be
sold within one year from the date
of issuance.
The Divestment Fee is lower than the
Acquisition Fee because the sourcing,
evaluating and executing of potential
acquisition opportunities generally
require more resources, effort and
time on the part of the Manager as
compared to divestments.
CORPORATE
GOVERNANCE
88
STARHILL GLOBAL REIT ANNUAL REPORT FY 2016/17