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105
EC World Real Estate Investment Trust ANNUAL REPORT 2016
NOTES TO THE
Financial Statements
For the Financial Year ended 31 December 2016
21. Units in issue (continued)
(a) On 5 August 2015, ECW was constituted as a private trust and one unit was issued at the issue price of S$1
per unit. Prior to the IPO, the unit was sub-divided into 673,995,371 private trust units.
(b) On 28 July 2016 (date of IPO), 777,512,000 units were issued at S$0.81 per unit. With the proceeds from the
IPO, the Manager fully redeemed the 673,995,371 private trust units. The redemption was paid for in cash at
S$0.81 per unit. The private trust units were cancelled subsequent to the redemption.
(c) On 15 November 2016, ECW issued 1,003,845 new units at the issue price of S$0.7689 per unit, in respect
of the payment of base fees to the Manager in units. The issue price was determined based on the volume
weighted average traded price for all trades done on SGX-ST in the ordinary course of trading for the last 10
business days of the relevant quarter on which the fees accrued.
Each unit in ECW represents an undivided interest in the REIT. The rights and interests of Unitholders are contained
in the Trust Deed and include the right to:
•
Receive income and other distributions attributable to the units held;
•
Participate in the termination of ECWby receiving a share of all net cash proceeds derived from the realisation
of the assets of ECW less any liabilities, in accordance with their proportionate interests in ECW. However, a
Unitholder does not have the right to require that any assets (or part thereof) of ECW be transferred to him;
and
•
Attend all Unitholders’ meetings. The Trustee or the Manager may (and the Manager shall at the request in
writing of not less than 50 Unitholders or Unitholders representing not less than 10% of the issued units of
ECW) at any time convene a meeting of Unitholders in accordance with the provisions of the Trust Deed.
A Unitholder’s liability is limited to the amount paid or payable for any units in ECW. The provisions of the Trust
Deed provide that no Unitholder will be personally liable to indemnify the Trustee or any creditor of the Trustee in
the event that the liabilities of ECW exceed its assets.
22. Commitments
(a) Capital commitments
As at 31 December 2016, there is no capital expenditure (2015: S$2,739,000) contracted but not recognised
in the financial statements.
(b) Operating lease commitments – where the Group is a lessor
The Group leases out its investment properties under non-cancellable operating leases. The leases have
varying terms, escalation clauses and renewal rights.
The future minimum lease receivables under non-cancellable operating leases contracted for at the
reporting date but not recognised as receivables, are as follows:
Group
2016
2015
S$’000
S$’000
Not later than one year
94,302
–
Between one and five years
292,843
–
387,145
–