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1. INTRODUCTION
The Board of Directors ("the Board") of AmanahRaya-REIT Managers Sdn
Bhd, the management company of ARREIT wishes to announce that the
Management Fee of ARREIT has been revised from the existing 0.30% to
0.60% per annum of the Net Asset Value of ARREIT with effect on 15 June
2010.
2. RATIONALE OF REVISION
The Board are of the opinion that the increase from 0.30% to 0.60% for
the Management Fee is reasonable based on the following reasons :-
i. it is within the permissible range of up to a maximum of 1.0% per
annum of the Net Asset Value of ARREIT as stipulated in the Trust Deed
of ARREIT dated 10 October 2006 (as varied by Supplemental Trust Deed
dated 4 January 2007 and the Second Supplement Trust Deed dated 27
August 2009).
ii. ARREIT's Net Asset Value after the completion of the recent
placement exercise has increased from RM440.562 million to RM564.424
million.
iii. There is no increase in the Management Fee's rate since the inception date.
3. APPROVAL
The revision is not subject to the approval of the Unitholders pursuant
to the provision of the Clause 19.1(a) of the Trust Deed dated 10
October 2006 (as varied by Supplemental Trust Deed dated 4 January 2007
and the Second Supplement Trust Deed dated 27 August 2009) where the
revised Management Fee of 0.60% per annum of the Net Asset Value of the
ARREIT is less than the approved annual management fee of 1.0% per
annum of the Net Asset Value of the ARREIT.
4. FINANCIAL EFFECTS
The above transaction does not has any material effect on the net asset
value, earning and distribution income of ARREIT for the financial year
ended 31 December 2009 and is not expected to have any material effect
for the financial year ending 31 December 2010.
This announcement is dated 10 June 2010. |
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