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CDL Hospitality Trusts 80
These notes form an integral part of the fnancial statements.
The fnancial statements were authorised for issue by the HBT Trustee-Manager, the H-REIT Manager and the
H-REIT Trustee on 16 March 2012.
1 General
CDL Hospitality Trusts is a stapled group comprising CDL Hospitality Real Estate Investment Trust (“H-REIT”)
and its subsidiaries (the “H-REIT Group”) and CDL Hospitality Business Trust (“HBT”) (collectively, the
“Stapled Group”). H-REIT is a Singapore-domiciled unit trust constituted pursuant to the trust deed dated
8 June 2006 as amended by the First Supplemental Deed dated 11 January 2007, the Second Supplemental
Deed dated 26 March 2010 and the Third Supplemental Deed dated 20 July 2010 (collectively, the “H-REIT
Trust Deed”) between M&C REIT Management Limited (the “H-REIT Manager”) and DBS Trustee Limited
(the “H-REIT Trustee”). The H-REIT Trust Deed is governed by the laws of the Republic of Singapore. The
H-REIT Trustee is under a duty to take into custody and hold the assets of H-REIT held by it or through its
subsidiaries in trust for the holders of units in H-REIT. HBT is a business trust constituted by a trust deed
dated 12 June 2006 (“HBT Trust Deed”) and is managed by M&C Business Trust Management Limited (the
“HBT Trustee-Manager”). The securities in each of H-REIT and HBT are stapled together under the terms of
a stapling deed dated 12 June 2006 entered into between the H-REIT Manager, the H-REIT Trustee and the
HBT Trustee-Manager (the “Stapling Deed”) and cannot be traded separately. Each stapled security in CDL
Hospitality Trusts (the “Stapled Security”) comprises a unit in H-REIT (the “H-REIT Unit”) and a unit in HBT
(the “HBT Unit”).
CDL Hospitality Trusts was formally admitted to the Offcial List of Singapore Exchange Securities Trading
Limited (“SGX-ST”) on 19 July 2006.
The principal activity of H-REIT and its subsidiaries is to invest in income producing real estate and real estate
related assets, which are used or substantially used for hospitality and hospitality related purposes, with the
primary objective of achieving an attractive level of return from rental income and for long-term capital growth.
As at the reporting date, HBT is dormant.
The consolidated fnancial statements of the H-REIT Group relate to H-REIT and its subsidiaries. The
consolidated fnancial statements of the Stapled Group relate to HBT and the H-REIT Group.
Several service agreements are in place in relation to management of HBT and H-REIT and its property
operations. The fee structures of these services are as follows:
(i) HBT Trustee-Manager’s fees
Pursuant to the HBT Trust Deed, the HBT Trustee-Manager is entitled to the following:
- a trustee fee of not exceeding 0.1% per annum of the value of HBT’s Deposited Property (as
defned in the HBT Trust Deed), subject to a minimum fee of $10,000 per month, if the value
of HBT’s Deposited Property is at least $50.0 million. The trustee fee is payable in arrears on a
monthly basis in the form of cash.
- a management fee of 10% of HBT’s proft before interest and tax in the relevant fnancial year
(calculated before accounting for the management fee in that fnancial year).
The management fee is payable in the form of cash or Stapled Securities as the HBT Trustee-
Manager may elect, and in such proportion and for such period as may be determined by the
HBT Trustee-Manager.
Notes to the Financial Statements