NOTES TO THE FINANCIAL STATEMENTS
(CONT’D)
31 DECEMBER 2015
3.
RELATED PARTY RELATIONSHIPS AND TRANSACTIONS (CONT’D)
3A.
Related party transactions (cont’d):
(B)
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)
2.0% (2014: 2.0%) per annum of the gross revenue for the relevant Retail Mall;
(ii)
2.0% (2014: 2.0%) per annumof 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% (2014: 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 (2014: 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.
(C)
Trustee’s fees
The Trustee’s fees shall not exceed 0.03% (2014: 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.
LIPPO MALLS INDONESIA RETAIL TRUST
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