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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: (Cont’d)
(C)
Property manager’s fees
Under the Property Management Agreements in respect of each Retail Mall, the Property Manager is
entitled to the following fees:
(i)
2% per annum of the gross revenue for the relevant Retail Mall;
(ii)
2% per annum of the net property income for relevant Retail Mall (after accounting for the fee
of 2% per annum of the gross revenue for the relevant Retail Mall);
(iii)
0.5% per annum of the net property income for the relevant Retail Mall in lieu of leasing
commissions otherwise payable to the Property Manager and/or third party agents; and
(iv)
Rp.60,000,000 (2013: Rp.60,000,000) per annum for the relevant Retail Space.
Under each existing Property Management Agreement, each of the Indonesian subsidiaries that are
owners of Retail Malls (“Retail Mall Property Companies”) agrees to reimburse the Property Manager,
for its expenses incurred in connection with the provision of property management services and with the
performance of its duties which are in compliance with the approved annual business plan and budget
as stated in the existing Property Management Agreement. Such expenses include but are not limited
to rent, service charge and Value-Added Tax (“VAT”) payable by the Property Manager of its lease of its
office premises; advertising and promotion costs; and salaries of the Property Manager’s employees who
are approved by the relevant Retail Mall Property Companies. In the event that the mall maintenance
and operation services are outsourced from the Property Manager to a third party company, the fees
(or equivalent remuneration) payable to or retained by such third party company shall be included as
fees to the Property Manager.
Notes to the Financial Statements
(Cont’d)
31 December 2014
