FEES AND CHARGES
The Manager’s fees and costs are detailed below and will be payable by the Trust.
FEE/COST 1
AMOUNT
The Manager will be entitled to an Acquisition Fee of up to 2% of the Purchase Price ($132,500)
Acquisition Fee
The Manager will be entitled to a Due Diligence Fee of up to 1% of the Purchase Price ($66,250)
Due Diligence Fee
The Manager will be entitled to an annual Trust Management Fee of up to 10% of Net Property Income but not less than 0.5% of the Gross Asset Value (GAV).
Trust Management Fee
The Manager will be entitled to be paid a Performance Fee of: • 20% of the amount by which the Trust's internal rate of return (IRR) on equity invested exceeds an IRR benchmark of 8.0%; and • 30% of the amount by which the Trust's internal rate of return (IRR) on equity invested exceeds an IRR benchmark of 18%.
Performance Fee
The Manager will be entitled to an Asset Disposal Fee of up to 1% of the sale price of the Property.
Asset Disposal Fee
Trustee, Manager may be issued Units in lieu of fees
The Trustee and the Manager may, subject to applicable law, elect to be issued Units or options for Units in lieu of the payment of all or part of any fee payable to it.
The Manager will be entitled to be paid a Removal Fee of 2% of Trust Value, if the Manager’s appointment is terminated (except under certain circumstances or gross negligence).
Removal Fee
The Manager will be entitled to be paid a Transfer Fee of up to $1,000 for units transferred by an Investor, payable by the transferor of the Units.
Transfer Fee
In consideration of providing member administration services, the Manager is entitled to be paid a service fee which is currently $20 per Investor per month.
Service Fee
If the Manager provides other services to the Trust, the Manager will be entitled to receive such fees as agreed by the Trustee on arm’s length terms.
Other Fees
The Manager (or an associate of the Manager) will be entitled to be paid or reimbursed from the Trust Assets for expenses reasonably incurred in connection with providing services for the Trust and performing their obligations under their arrangements with the Trustee. The Manager, or an entity related to the Manager, will be entitled to be paid interest on any loans made to the Trust. Loans will only be provided if it is deemed to be in the best interest of the Trust. The interest rate will be determined at the time a loan is made to the Trust, and with reference to unsecured loan interest rates quoted by Australian domestic Banks. The terms of a loan may require monthly repayments made in arrears (or at some agreed regular frequency), or a single repayment comprising capital and interest at a specific agreed future date. All fees, costs, charges, expenses and outgoings properly incurred in connection with the establishment, administration, management and winding up of the Trust by the Trustee for the performance of its duties under the Trust deed or incurred by the Trustee in performing its duties will be payable from the Trust Assets or income of the Trust. The Trustee in addition to any remuneration payable to it, will be indemnified by and will be entitled to be reimbursed from the Trust Assets or income of the Trust in respect of such fees, costs, charges, expenses and outgoings, together with any GST payable by the Trustee in respect of those fees, costs, charges, expenses and outgoings. The Trustee will not recover any fees from the Trust (other than the removal fee mentioned below) where such fees are payable to the Manager or QHC. However, if any fees cease to be payable to the Manager, and/or QHC (for example, as a result of an agreement with these entities being terminated) the Trustee would recover from the Trust the fees which were payable to these entities. The Trustee is also entitled to a removal fee of 2% of the Trust Value if removed as trustee of the Trust (except if the Trustee is removed due to gross negligence or material fiduciary breach). The Manager will be entitled to a DAF equal to 0.5% of the Gross Facility Limit(s) approved by the Debt Lender for the acquisition and any subsequent refinance of, or increase to, the total approved Gross Facility Limit(s).
Manager Expenses
Loans provided by the Manager to the Trust
Trust Expenses
Trustee Fees
Debt Arrangement Fee (DAF)
1 All fees and costs are calculated and payable in line with the IMAS and all figures disclosed exclude the net effect of GST and Reduced Income Tax Credits (RITC).
QUANTA TENNYSON STREET OFFICE TRUST | Information Memorandum
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