NOTES TO THE FINANCIAL STATEMENTS
(CONT’D)
31 DECEMBER 2015
3.
RELATED PARTY RELATIONSHIPS AND TRANSACTIONS (CONT’D)
3A.
Related party transactions:
There are transactions and arrangements between the Trust and related parties and the effects of these on the
basis determined between the parties are reflected in these financial statements. The intercompany 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.
Intragroup transactions and balances that have been eliminated in these consolidated financial statements are
not disclosed as related party transactions and balances below.
In addition to the transactions and balances disclosed elsewhere in the notes to the financial statements, this
item includes the following:
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)
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% (2014: 0.25%) per annum of the value of the Deposited Property;
(ii)
A performance fee (“Performance Fee”) is fixed at 4.0% (2014: 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 and/or cash;
(iii)
An authorised investment management fee of 0.5% (2014: 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% (2014: 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% (2014: 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.
ANNUAL REPORT 2015
91
