Notes to the Financial Statements For the financial year ended 31 December 2025 1. GENERAL (CONT’D) (E) Fees under the property management agreements for Singapore properties ESR Property Services Pte. Ltd. (the “Property Manager”), as property manager for all of ESR-REIT’s Singapore properties including those held through 7000 AMK LLP, Viva Trust, ALOG Trust and Tuas South Avenue LLP, is entitled to receive the following fees: (a) A property management fee of 2.0% per annum of the gross revenue of the relevant property, other than 2 & 4 Changi Business Park Avenue 1 (Hotel) where property management fee is charged at 1.0% per annum of the gross revenue. (b) A lease management fee of 1.0% per annum of the gross revenue of the relevant property, other than 2 & 4 Changi Business Park Avenue 1 (Hotel) where no lease management fee shall be charged. (c) A marketing services commission equivalent to: (i) up to one month’s gross rent, inclusive of service charge, for securing a tenancy of three years or less; (ii) up to two month’s gross rent, inclusive of service charge, for securing a tenancy of more than three years; (iii) up to half month’s gross rent, inclusive of service charge, for securing a renewal of tenancy of three years or less; and (iv) up to one month’s gross rent, inclusive of service charge, for securing a renewal of tenancy of more than three years. (d) A project management fee in relation to development or redevelopment (if not prohibited by the Property Funds Appendix of the Code on Collective Investment Schemes (“CIS Code”) or if otherwise permitted by the Monetary Authority of Singapore (“MAS”)), the refurbishment, retrofitting and renovation works on a property, as follows: (i) where the construction costs are $2.0 million or less, a fee of 3.0% of the construction costs; (ii) where the construction costs exceed $2.0 million but do not exceed $20.0 million, a fee of 2.0% of the construction costs; (iii) where the construction costs exceed $20.0 million but do not exceed $50.0 million, a fee of 1.5% of the construction costs; and (iv) where the construction costs exceed $50.0 million, a fee to be mutually agreed by the Manager, the Property Manager and the Trustee. (e) A property tax services fee in respect of property tax objections submitted to the tax authority on any proposed annual value of a property if, as a result of such objections, the proposed annual value is reduced resulting in property tax savings for the relevant property: (i) where the proposed annual value is $1.0 million or less, a fee of 7.5% of the property tax savings; (ii) where the proposed annual value is more than $1.0 million but does not exceed $5.0 million, a fee of 5.5% of the property tax savings; and (iii) where the proposed annual value is more than $5.0 million, a fee of 5.0% of the property tax savings. The above-mentioned fee is a lump sum fixed fee based on the property tax savings calculated over a 12-month period. The Property Manager may opt to receive property and lease management fees in the form of cash or Units or a combination of cash and Units as it may determine. 158 ESR-REIT ANNUAL REPORT 2025
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