1. GENERAL INFORMATION (continued) (e) Fees under the Property Management Agreement (continued) (ii) Marketing services Under the Property Management Agreement, the Trustee will pay the Property Manager, the following commissions: • 1 month’s gross rent for securing a tenancy of 24 months or more; • 0.5 month’s gross rent for renewal of existing lease; and • if the new lease secured or lease renewal is for tenure of less than 24 months, the commission shall be calculated on a pro rata basis. The lease commission payable to the Property Manager in respect of the marketing services to be provided for the Properties (Note 14) shall only be payable for new leases entered into or existing leases renewed in the year commencing from 1 January 2018 and thereafter. (iii) Project management fee The Property Manager is entitled to a project management fee based on the following development or redevelopment (if not prohibited by the Property Funds Appendix or if otherwise permitted by the Monetary Authority of Singapore (“MAS”)), refurbishment, retrofitting, addition and alteration or renovation works to the relevant property: • a fee of 3.25% of the construction costs, where the construction costs are RMB10.0 million; • a fee of 3.0% of the construction costs, where the construction costs exceed RMB10.0 million but do not exceed RMB100.0 million; • a fee of 2.75% of the construction costs, where the construction costs exceed RMB100.0 million but do not exceed RMB250.0 million; and • a fee to be mutually agreed by the Manager, the Trustee and the Property Manager, where the construction costs exceed RMB250.0 million. The project management fees will be paid in the form of cash and/or units (as the Manager may in its sole discretion to determine). 2. MATERIAL ACCOUNTING POLICY INFORMATION 2.1 Basis of preparation The financial statements have been prepared in accordance with the Statement of Recommended Accounting Practice 7 (“RAP 7”) “Reporting Framework for Unit Trusts” revised and issued by the Institute of Singapore Chartered Accountants (“ISCA”), the applicable requirements of the Code on Collective Investment Schemes (the “CIS Code”) issued by MAS and the provisions of the Trust Deed. RAP 7 requires that accounting policies adopted should generally comply with the recognition and measurement principles of Singapore Financial Reporting Standards (“FRS”). The financial statements are expressed in Singapore Dollars (“S$” and “SGD”) and has been rounded to the nearest thousand, unless otherwise stated. EC WORLD REIT 82 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
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