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CapitaLand Mall Trust
Annual Report 2015
Overview
Sustainability
Business
Review
Portfolio
Details
Corporate
Governance &
Transparency
Financials &
Additional
Information
Acquisition Fee
The Acquisition Fee, which is contained in Clause 23(B)(i) of the Trust Deed, is earned by the Manager upon
the successful completion of an acquisition. This fee seeks to motivate and compensate the Manager for its
efforts expended to continually seek out and acquire DPU accretive assets to increase longer term returns for
Unitholders. In addition, the Acquisition Fee allows the Manager to recover the additional costs and resources
incurred by the Manager in the course of seeking out new acquisition opportunities, including but not limited to,
due diligence efforts and man hours spent in evaluating the transaction.
As required by the Property Funds Appendix, where the Acquisition Fee is to be paid to the Manager for the
acquisition of assets from an interested party, the Acquisition Fee is to be paid in the form of Units at the prevailing
market price, which should not be sold for a period of one year from their date of issuance. As the Manager’s
interest is closely tied to the performance of CMT, in this regard, this helps to ensure that any acquisitions from
interested parties perform and contribute to Unitholders’ returns.
Divestment Fee
The Divestment Fee, which is contained in Clause 23(B)(i) of the Trust Deed, is earned by the Manager upon the
successful completion of a divestment. This fee seeks to motivate and compensate the Manager for its efforts
expended to maximise value received by CMT in the event of a divestment. In addition, the Divestment Fee allows
the Manager to recover the additional costs and resources incurred by the Manager for the divestment, including
but not limited to due diligence efforts and man hours spent in marketing and maximising the divestment price.
As required by the Property Funds Appendix, where the Divestment Fee is to be paid to the Manager for the
divestment of assets to an interested party, the Divestment Fee is to be paid in the form of Units at the prevailing
market price, which should not be sold for a period of one year from their date of issuance.
(F) CODE OF BUSINESS CONDUCT
The Manager adheres to an ethics and code of business conduct policy which deals with issues such as
confidentiality, conduct and work discipline, corporate gifts and concessionary offers. Clear policies and
guidelines on how to handle workplace harassment and grievances are also in place.
The policies and guidelines are published on CL’s Intranet which is accessible to all employees of the Manager.
The policies that the Manager has implemented aim to help to detect and prevent occupational fraud in mainly
three ways.
First, the Manager offers fair compensation packages, based on practices of pay-for-performance and promotion
based on merit to its employees. The Manager also provides various healthcare subsidies and financial assistance
schemes to alleviate the common financial pressures its employees face.
Second, clearly documented policies and work procedures incorporate internal controls which ensure that
adequate checks and balances are in place. Periodic audits are also conducted to evaluate the efficacy of these
internal controls.
Finally, the Manager seeks to build and maintain the right organisational culture through its core values, educating
its employees on good business conduct and ethical values.
