C A M B R I D G E I N D U S T R I A L T R U S T
A N N U A L R E P O R T 2 0 1 5
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(A)
Fees Payable to the Manager (Cont’d)
Performance Fee (Cont’d)
The fee is payable in cash, units or a combination of both at the option of the Manager. Under Clause 15.1.2 of
the Trust Deed, the performance fee, whether in cash or units, is payable in arrears within 30 days of the financial
year end.
The issue price for the performance fees paid in units is determined based on the greater of, five business day
VWAP before and after the relevant financial year end (ie 10 days VWAP in total) and gross asset value per unit.
Acquisition Fee
The Acquisition Fee, computed at 1.0% of the purchase price excluding GST, earned by the Manager is contingent
upon the successful completion of property acquisitions. This fee entitlement is prescribed in Clause 15.2 of the
Trust Deed. This fee seeks to motivate and compensate the Manager for efforts expended to continually seek out
and acquire DPU accretive assets to increase sustainable returns for Unitholders.
The Acquisition Fee also allows the Manager to recover the additional costs and resources incurred by the
Manager in the course of seeking out new acquisition opportunities, including but not limited to due diligence
efforts and man hours spent in evaluating the transaction.
As required by the Property Funds Appendix, where the acquisition fees are to be paid to the Manager for
the acquisition of assets from an interested party, the acquisition fees are to be paid in the form of units at the
prevailing market price which should not be sold for a period of one year from their date of issuance. As the
Manager’s interest is closely tied to the performance of DPU, this ensures that related party acquisition performs
and contributes to Unitholders’ returns.
Please see Note 1 of the audited financial statements for FY2015 for computation methodology.
Divestment Fee
The Divestment Fee, computed at 0.5% of the sale price excluding GST, earned by theManager is contingent upon
the successful completion of property divestments. This fee entitlement is prescribed in Clause 15.3 of the Trust
Deed. This fee seeks to motivate and compensate the Manager for its efforts expended to continually rebalance
the portfolio and maximise value received by the Trust in the divestment. In addition, the Divestment Fee allows
the Manager to recover the additional costs and resources incurred by the Manager for the divestment, including
but not limited to due diligence efforts and man hours spent in marketing and maximising the divestment price.
As required by the Property Funds Appendix, where divestment fees are to be paid to the Manager for the
divestment of assets to an interested party, the divestment fees are to be paid in the form of units at the prevailing
market price which should not be sold for a period of one year from their date of issuance.
Please see Note 1 of the audited financial statements for FY2015 for computation methodology.
ADDITIONAL INFORMATION
