165
ANNUAL REPORT 2014
NOTES TO THE FINANCIAL STATEMENTS
30 CONTINGENT LIABILITIES
Intra-group financial guarantee
During the financial year, H-REIT has provided a corporate guarantee to a bank in respect of banking facilities
amounting to $32,970,000 (or JPY3 billion) granted to a wholly-owned subsidiary which expire on 18 September
2015. At the reporting date, H-REIT does not consider it probable that a claim will be made against H-REIT under
the guarantee.
31 RELATED PARTY TRANSACTIONS
The H-REIT Manager and the master lessees of Orchard Hotel, Grand Copthorne Waterfront Hotel, M Hotel,
Copthorne King’s Hotel and Studio M Hotel are indirect wholly-owned subsidiaries of a substantial holder of the
Stapled Securities in the Stapled Group.
In the normal course of the operations of H-REIT and HBT, the H-REIT Manager’s management fee, H-REIT Trustee’s
fee and HBT Trustee-Manager have been paid or are payable to the H-REIT Manager, H-REIT Trustee and HBT
Trustee-Manager respectively.
During the financial year, other than the transactions disclosed elsewhere in the financial statements, there were
the following related party transactions:
HBT Group
H-REIT Group
Stapled Group
2014
2013
2014
2013
2014
2013
$’000
$’000
$’000
$’000
$’000
$’000
Transaction value
Shared service expenses paid/
payable to a related
corporation of
the H-REIT Manager
–
–
103
133
103
133
Provision of accounting services/
IT and HR by a related
corporation of the
H-REIT Manager
–
–
106
96
106
96
Rental expense paid/payable to
a related corporation of the
H-REIT Manager
–
–
755
755
755
755
Rental income received/
receivable from related
corporations of the
H-REIT Manager
–
–
82,254
82,868
82,254
82,868
Cleaning fees paid/payable to
a related corporation of the
H-REIT Manager
–
–
–
185
–
185
Provision of internal audit services by
a related corporation of the
H-REIT manager
–
–
20
39
20
39
Provision of corporate
secretarial services by
a related corporation of the
H-REIT Manager/
HBT Trustee-Manager
16
–
64
85
80
85
