97
Annual Report 2015
STATEMENT OF POLICIES AND PRACTICES IN
RELATION TO THE MANAGEMENT AND GOVERNANCE
OF CDL HOSPITALITY BUSINESS TRUST
Under the HBT Trust Deed, if the value of the HBT deposited property is at least S$50.0 million, a maximum of 0.1% per
annum of the value of the HBT's deposited property (if any), subject to a minimum fee of S$10,000 per month, excluding
out-of-pocket expenses and goods and services tax, is payable to the HBT Trustee-Manager as trustee fee. For the purpose
of calculating the management fee, if HBT holds only a partial interest in any of HBT deposited property, such HBT deposited
property shall be pro-rated in proportion to the partial interest held.
The trustee fee is payable in arrears on a monthly basis in the form of cash.
The HBT Trustee-Manager is also entitled to a maximum of 0.1% of the acquisition price of any authorised investment acquired
directly or indirectly by HBT (pro-rated if applicable to the proportion of HBT’s interest in the authorised investment acquired).
The acquisition fee is payable to the HBT Trustee-Manager in the form of cash and/or Stapled Securities or (as the case may
be) HBT Units as the HBT Trustee-Manager may elect, and in such proportion and for such period as may be determined by
the HBT Trustee-Manager.
Any increase in the rate or any change in structure of the HBT Trustee-Manager’s management fee and trustee fee, or in the
maximum permitted level of the acquisition fee, must be approved by an extraordinary resolution passed at a meeting of HBT
Unitholders duly convened and held in accordance with the provisions of the HBT Trust Deed.
The table below sets out the fees earned by the HBT Trustee-Manager for the financial year ended 31 December 2015.
Fee
Amount (S$’000)
% in Cash
% in Units
Management Fee
–
–
–
Acquisition Fee
132
100%
0
Trustee Fee
37
100%
0
During the financial year ended 31 December 2015, the HBT Trustee-Manager has received 100% of the acquisition and trustee
fees in cash. No expenses were paid to the HBT Trustee-Manager during the financial year ended 31 December 2015 and any
out-of-pocket expenses incurred were funded by HBT’s working capital.
Fees payable to the HBT Trustee Manager by HBT will be put up to the HBT Trustee-Manager Board for approval every quarter.
The HBT Trustee-Manager Board will meet every quarter to review the material expenses and fees charged to HBT and
to ensure that the expenses payable to the HBT Trustee-Manager out of the HBT Trust Property are appropriate and in
accordance with the HBT Trust Deed.
Compliance with the Business Trusts Act and Listing Manual
The Company Secretary and Compliance Officer monitor HBT’s compliance with the BTA and the Listing Manual. The HBT
Trustee-Manager has an internal compliance manual which serves to summarise all the applicable rules and regulations as well
as key internal policies and processes which HBT needs to comply with. The manual will be consistently updated whenever
there are changes to the rules and regulations and such policies and processes, and this will help management to check that
applicable rules and regulations are being complied with.
The HBT Trustee-Manager will also engage the services of and obtain advice from professional advisers and consultants from
time to time to ensure compliance with the requirements of the BTA and the Listing Manual.
