184
28 COMMITMENTS (CONT’D)
(c)
The H-REIT Group and the Stapled Group have entered into an operating lease for a conference centre with
a related party. The lease runs for an initial period of 5 years, with an option to renew the lease on expiry of the
initial period. The H-REIT Group’s and the Stapled Group’s commitments for future minimum lease payments
under the non-cancellable operating lease are as follows:
H-REIT Group
Stapled Group
2015
2014
2015
2014
$’000
$’000
$’000
$’000
Within 1 year
548
755
548
755
After 1 year but within 5 years
620
414
620
414
1,168
1,169
1,168
1,169
(d)
Under the terms of the lease agreement for Novotel Singapore Clarke Quay, the H-REIT Group and the Stapled
Group are required to incur expenditure equivalent to 3.0% of the annual gross revenue of the hotel to maintain
and improve the hotel’s furniture and fixtures, equipment and its environment. As at the end of the financial
year, the H-REIT Group and the Stapled Group are committed to incur capital expenditure of $140,000 (2014:
$140,000) under the terms of the lease agreement.
(e)
H-REIT’s subsidiary, CDLHT Oceanic Maldives Private Limited holds a leasehold interest in Meradhoo in Gaafu Alifu
Atoll until the expiry of its land lease on 14 June 2056. On 6 February 2014, the Maldivian government amended the
laws and the lease extension fee was to be paid in eight quarterly instalments of US$187,500 commencing in June
2014. As at the end of the financial year, the future lease extension fee is approximately $264,500 (US$187,500).
(f)
HBT’s subsidiary, CDL HBT Cambridge City Hotel (UK) Ltd, holds a leasehold land, with a 125-year lease granted
by the Cambridge City Council (the "
Head Lessor
"), and the lease granted by the Head Lessor, the ("
Head
Lease
") commencing on 25 December 1990. In addition to the approximately 100 years left on the lease, the
lease term may be extended for a further term of 50 years pursuant to the lessee’s option to renew under the
Head Lease. Lease payment under this lease is variable, being a percentage of gross revenue and subject to
a minimum value that is itself a function of the aggregate rent paid over the previous 3 years. As at the end of the
financial year, the HBT Group recorded lease payment of $121,800 (£58,000).
(g)
The CDL HBT Oceanic Maldives Pvt Ltd, an indirect wholly-owned subsidiary of HBT has an operating agreement
with CDLHT Oceanic Maldives Pvt Ltd, an indirect wholly-owned subsidiary of H-REIT for the use of Jumeirah
Dhevanafushi. The HBT Group’s commitments for future minimum lease payments under the non-cancellable
lease are as follows:
HBT Group
2015
2014
$’000
$’000
Within 1 year
4,113
3,969
After 1 year but within 5 years
16,452
15,877
After 5 years
12,339
15,877
32,904
35,723
NOTES TO THE FINANCIAL STATEMENTS
