NOTES TO THE FINANCIAL STATEMENTS
1
General (Cont’d)
(B)
Management fees (Cont’d)
If the amount of such fees for a financial year exceeds the annual fee cap, the Base Fee of the financial
year shall be paid to the Manager and only that portion of the Performance Fee equal to the balance of an
amount up to the annual fee cap will be paid to the Manager. The remaining portion of the Performance
Fee, which will not be paid, shall be accrued and carried forward for payment to the Manager in future
Half-Years. If, at the end of a Half-Year, there is any accrued Performance Fee which has been accrued
for a period of at least three years prior to the end of that Half-Year, such accrued Performance Fee shall
be paid to the Manager if the accumulated return of the Trust Index in that three-year period exceeds
the accumulated return of the Cambridge Benchmark Index over the same period. The payment of such
accrued Performance Fee shall not be subject to the annual fee cap.
Please refer to Note 12 for the election of Manager’s base fees payable in units.
(C)
Acquisition and disposal fees
The Manager is also entitled to receive the following fees:
(i)
An acquisition fee of 1.0% of each of the following as is applicable, subject to there being no
double-counting:
(a)
the purchase price, excluding GST, of any real estate acquired, whether directly by CIT or
indirectly through a special purpose vehicle;
(b)
the value of any underlying real estate (pro-rata, if applicable, to the proportion of CIT’s
interest in such real estate) where CIT invests in any class of real estate related assets,
including any class of equity, equity-linked securities and/or securities issued in real estate
securitisation, of any entity directly or indirectly owning or acquiring such real estate,
provided that:
•
CIT shall hold or invest in at least 50.0% of the equity of such entity; or
•
if CIT holds or invests in 30.0% or more but less than 50.0% of the equity of such entity,
CIT shall have management control of the underlying real estate and/or such entity;
(c)
the value of any shareholder’s loan extended by CIT to the entity referred to in paragraph
(b) above, provided that the proviso in paragraph (b) is complied with; and
(d)
the value of any investment by CIT in any loan extended to, or in debt securities of, any
property corporation or other special purpose vehicle owning or acquiring real estate,
(where such investment does not fall within the ambit of paragraph (b)) made with the prior
consent of the Unitholders passed by ordinary resolution at a meeting of Unitholders duly
convened and held in accordance with the provisions of the Trust Deed.
CAMBRIDGE INDUSTRIAL TRUST | ANNUAL REPORT 2014
124
