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LIPPO MALLS INDONESIA RETAIL TRUST ANNUAL REPORT 2014
3.
RELATED PARTY RELATIONSHIPS AND TRANSACTIONS (CONT’D)
3B. Related parties other than related companies:
There are transactions and arrangements between the reporting entity and related parties and the effects of
these on the basis determined between the parties are reflected in these financial statements. The related party
balances are unsecured without fixed repayment terms and interest unless stated otherwise. For any balances
and financial guarantees no interest or charge is imposed unless stated otherwise.
The Trust has entered into several service agreements in relation to the management of the Trust and its property
operations. The fee structures of these services are as follows:
(A)
Trustee’s fees
The Trustee’s fees shall not exceed 0.03%per annum of the value of the Deposited Property (as defined in
the Trust Deed), subject to a minimum of $15,000 per month, excluding out-of-pocket expenses and GST.
The Trustee’s fee is presently charged on a scaled basis of up to 0.03% per annum of the value of the
Deposited Property, subject to a minimum sum per month. Any increase in the rate of the remuneration
of the Trustee above the permitted limit or any change in the structure of the remuneration of the
Trustee shall be approved by an Extraordinary Resolution at a Unitholders’ meeting duly convened and
held in accordance with the provisions of the Trust Deed.
(B)
Manager’s management fees
Under the Trust Deed, the Manager is entitled to management fees as follows:
(i)
A base fee (“Base Fee”) of 0.25% per annum of the value of the Deposited Property;
(ii)
A performance fee (“Performance Fee”) is fixed at 4.0% per annum of the Group’s Net Property
Income (“NPI”) (calculated before accounting for this additional fee in the reporting year). NPI in
relation to real estate, whether held directly by the Trust or indirectly through a special purpose
company, and in relation to any year or part thereof, means its property income less property
operating expenses for such real estate for that year or part thereof. The Manager may opt to
receive the performance fee in the form of units or and/or cash;
(iii)
An authorised investment management fee of 0.5% per annum of the value of Authorised
Investments which are not in the form of real estate (whether held directly by the Trust or indirectly
through one or more subsidiaries). Where such authorised investment is an interest in a property
fund (either a REIT or private property fund) wholly managed by a wholly-owned subsidiary of
PT Lippo Karawaci Tbk (“Sponsor”), no authorised investment management fee shall be payable
in relation to such authorised investment;
(iv)
Manager’s acquisition fee (“Acquisition Fee”) is determined at 1.0% of value or consideration
as defined in the Trust Deed for any real estate or other investments (subject to there being no
double-counting); and
(v)
Divestment fee (“Divestment Fee”) at the rate of 0.5% of the sales price of any Authorised
Investment directly or indirectly sold or divested from time to time by the Trustee on behalf of
the Trust. The Manager may opt to receive the divestment fee in the form of units and/or cash.
Notes to the Financial Statements
(Cont’d)
31 December 2014
