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EC World Real Estate Investment Trust ANNUAL REPORT 2016
NOTES TO THE
Financial Statements
For the Financial Year ended 31 December 2016
These notes form an integral part of and should be read in conjunction with the accompanying financial statements.
1.
General information
EC World Real Estate Investment Trust (“ECW”) (formerly known as EC World Trust) is a Singapore-domiciled Real
Estate Investment Trust constituted pursuant to the Trust Deed dated 5 August 2015 (as amended) between EC
World Asset Management Pte. Ltd. (the “Manager”) and DBS Trustee Limited (the “Trustee”). The Trust Deed is
governed by the laws of the Republic of Singapore.
ECW was formally admitted to the Official List of the Singapore Exchange Securities Trading Limited (“SGX-ST”)
on 28 July 2016 (the “Listing Date”) and was approved for inclusion under the Central Provident Fund Investment
Scheme.
The financial periods presented in this audited financial statements are not directly comparable as ECW was
constituted as a private fund from 5 August 2015 to 27 July 2016.
The principal activity of ECW and its subsidiaries (the “Group”) is to invest, directly or indirectly, in a diversified
portfolio of income-producing real estate which is used primarily for e-commerce, supply chain management
and logistics purposes, as well as real estate-related assets, with an initial geographical focus on the People’s
Republic of China (the “PRC”).
ECW has entered into several service agreements in relation to the management of ECW and its property
operations. The fee structures for these services are as follows:
(a) Trustee’s fees
The Trustee’s fees shall not exceed 0.1% per annum of the value of all the assets of the Group (“Deposited
Property”) (subject to a minimum of S$12,000 per month), excluding out-of-pocket expenses and GST
in accordance with the Trust Deed. The Trustee’s fees are payable out of the Deposited Property of ECW
monthly, in arrears.
(b) Manager’s management fees
The Manager is entitled under the Trust Deed to receive the following remuneration:
(i)
a base fee of 10.0% per annum of the Distributable Income (calculated before accounting for the base
fee and the performance fee in each financial year); and
(ii)
a performance fee of 25.0% of the difference in Distribution per Unit (“DPU”) in a financial year with
the DPU in the preceding full financial year (calculated before accounting for the performance fee but
after accounting for the base fee in each financial year) multiplied by the weighted average number of
Units in issue for such financial year.
No base fee is payable for the financial period from 5 August 2015 to 27 July 2016. No performance fee is
payable for the financial period from 5 August 2015 to 31 December 2016.
The base fee and performance fee, if any, is payable to the Manager or its nominees in the form of cash
and/or units out of the Deposited Property. The Manager has agreed to receive 100% of the Base Fee and
Performance Fee in the form of Units for the period from the Listing Date to 31 December 2017.