OUR ROLE
Our primary role as the manager of CMT (Manager) is to set the strategic direction of CMT and make
recommendations to HSBC Institutional Trust Services (Singapore) Limited, in its capacity as trustee
of CMT (Trustee), on acquisition, divestment and enhancement of the assets of CMT in accordance
with its stated investment strategy. 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 CMT. Our primary
responsibility is to manage the assets and liabilities of CMT for the benefit of the unitholders of CMT
(Unitholders). We do this with a focus on generating rental income and enhancing asset value over
time so as to maximise the returns from the investments, and ultimately the distributions and total
returns to Unitholders.
Our other functions and responsibilities as the Manager include:
(a) using our best endeavours to conduct CMT’s business in a proper and efficient manner and to
conduct all transactions with, or on behalf of, CMT at arm’s length;
(b) 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’ plans, written commentaries on key issues and underlying
assumptions on rental rates, operating expenses and any other relevant assumptions;
(c) 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)) and the tax rulings issued
by the Inland Revenue Authority of Singapore on the taxation of CMT and Unitholders;
(d) attending to all regular communications with Unitholders; and
(e) supervising CapitaLand Retail Management Pte Ltd (Property Manager), the property manager
which performs the day-to-day property management functions (including leasing, marketing,
promotion, coordination and property management) for CMT’s malls; with regard to Raffles City
Singapore (RCS), which is held by CMT and CapitaCommercial Trust (CCT) in the proportions
of 40.00% and 60.00% respectively, the Property Manager holds 40.00% interest in CapitaLand
(RCS) Property Management Pte. Ltd. which provides property management services to RCS
with CapitaLand Commercial Management Pte. Ltd., the property manager of the properties
owned by CCT, holding the other 60.00%. As a result of its interest in CapitaLand (RCS) Property
Management Pte. Ltd., the Property Manager is able to play a key role in directing the property
management function for RCS.
The Manager also considers sustainability issues (including environmental and social factors) as part
of its responsibilities. CMT’s environmental sustainability and community outreach programmes are
set out on pages 102 to 107 of the Annual Report.
CMT, constituted as a trust, is externally managed by the Manager and therefore has no personnel
of its own. The Manager appoints experienced and well qualified management to run its day-to-day
operations. All Directors and employees of the Manager are remunerated by the Manager and not
CMT.
Corporate Governance
34 | CapitaMall Trust Annual Report 2014
