Icon IconOur Role

Our primary role as the manager of Ascott Reit (Manager) is to set the strategic direction of Ascott Reit and make recommendations to DBS Trustee Limited, in its capacity as trustee of Ascott Reit (Trustee), on any investment opportunities for Ascott Reit and the enhancement of the assets of Ascott Reit in accordance with the stated investment strategy for Ascott Reit. The research, evaluation and analysis required for this purpose are coordinated and carried out by us as the Manager.

As the Manager, we have general powers of management over the assets of Ascott Reit. Our primary responsibility is to manage the assets and liabilities of Ascott Reit for the benefit of the unitholders of Ascott Reit (Unitholders). We do this with a focus on generating rental income and enhancing asset value over time so as to maximise returns from the investments, and ultimately the distributions and total returns to Unitholders.

Our other functions and responsibilities as the Manager include:

  1. using our best endeavours to conduct Ascott Reit’s business in a proper and efficient manner;

  2. preparing annual business plans for review by the directors of the Manager (Directors), including forecasts on revenue, net income and capital expenditure, explanations on major variances to previous years’ financial results, written commentaries on key issues and underlying assumptions on rental rates, operating expenses and any other relevant assumptions;

  3. ensuring compliance with relevant laws and regulations, including the Listing Manual of Singapore Exchange Securities Trading Limited (SGX-ST) (Listing Manual), the Code on Collective Investment Schemes (CIS Code) issued by the Monetary Authority of Singapore (MAS) (including Appendix 6 of CIS Code (Property Funds Appendix)), the Securities and Futures Act (Chapter 289 of Singapore), written directions, notices, codes and other guidelines that MAS may issue from time to time, and the tax rulings issued by the Inland Revenue Authority of Singapore on the taxation of Ascott Reit and Unitholders;

  4. attending to all regular communications with Unitholders; and

  5. supervising the relevant property manager which performs the day-to-day property management functions (including operation, management, marketing and promotion) for Ascott Reit’s properties.

The Manager also considers sustainability issues (including environmental and social factors) as part of its responsibilities. Ascott Reit’s environmental sustainability and community outreach programmes are set out on pages 54 to 57 of this Annual Report.

Ascott Reit, constituted as a trust, is externally managed by the Manager. The Manager appoints experienced and well qualified personnel to run its day-to-day operations.

The Manager was appointed in accordance with the terms of the trust deed constituting Ascott Reit and dated 19 January 2006 (as amended, varied or supplemented from time to time) (Trust Deed). The Trust Deed outlines certain circumstances under which the Manager can be removed, including by notice in writing given by the Trustee upon the occurrence of certain events, or by resolution passed by a simple majority of Unitholders present and voting at a meeting of Unitholders duly convened and held in accordance with the provisions of the Trust Deed.

The Manager is a wholly owned subsidiary of CapitaLand Limited (CL) which holds a significant unitholding interest in Ascott Reit. CL is a long-term real estate developer and investor, and has strong inherent interests in the performance of Ascott Reit. CL’s significant unitholding in Ascott Reit ensures its commitment to Ascott Reit and as a result, CL’s interest is aligned with that of other Unitholders. The Manager’s association with CL provides the following benefits, among other things, to Ascott Reit:

  1. a stable pipeline of property assets through CL’s development activities;

  2. wider and better access to banking and capital markets on favourable terms;

  3. fund raising and treasury support; and

  4. access to a bench of experienced management talent.