NOTES TO THE FINANCIAL STATEMENTS
1
General (Cont’d)
(D)
Property Manager’s fees (Cont’d)
(iv)
A project management fee in relation to development or redevelopment (if not prohibited by
the Property Funds Appendix of the Code on Collective Investment Schemes (“CIS Code”) or
if otherwise permitted by the MAS), the refurbishment, retrofitting and renovation works on a
property, as follows:
(a)
where the construction costs are $2.0 million or less, a fee of 3.0% of the construction costs;
(b)
where the construction costs exceed $2.0 million but do not exceed $20.0 million, a fee of
2.0% of the construction costs;
(c)
where the construction costs exceed $20.0 million but do not exceed $50.0 million, a fee
of 1.5% of the construction costs; and
(d)
where the construction costs exceed $50.0 million, a fee to be mutually agreed by the
Manager, the Property Manager and the Trustee.
(v)
A property tax services fee in respect of property tax objections submitted to the tax authority on
any proposed annual value of a property if, as a result of such objections, the proposed annual
value is reduced resulting in property tax savings for the relevant property:
(a)
where the proposed annual value is $1.0million or less, a fee of 7.5% of the property tax savings;
(b)
where the proposed annual value is more than $1.0 million but does not exceed $5.0
million, a fee of 5.5% of the property tax savings; and
(c)
where the proposed annual value is more than $5.0 million, a fee of 5.0% of the property
tax savings.
The above-mentioned fee is a lump sum fixed fee based on the property tax savings calculated
over a 12-month period.
2 Basis of preparation
2.1 Statement of compliance
The financial statements are prepared in accordance with the recommendations of Statement of
Recommended Accounting Practice (“RAP”) 7
“Reporting Framework for Unit Trusts”
issued by the
Institute of Singapore Chartered Accountants and the applicable requirements of the CIS Code issued by
the MAS and the provisions of the Trust Deed. RAP 7 requires that accounting policies adopted should
generally comply with the recognition and measurement principles of Singapore Financial Reporting
Standards (“FRS”).
CAMBRIDGE INDUSTRIAL TRUST | ANNUAL REPORT 2014
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