ESR-Reit inks new property management agreements with property manager

THE real estate investment trust (Reit) manager of ESR-Reit has entered into a property management agreement (PMA) with the Reit's existing property manager, for the provision of property management services for all the properties owned by ESR-Reit and located in Singapore.

Simultaneously, the manager of Viva Trust, a wholly owned sub-trust of ESR-Reit has also entered into a PMA with the property manager for the nine properties which Viva Trust holds.

The term of each of the PMAs is for a period of three-and-a-half years commencing from Jan 1, 2019. The existing PMAs entered into with the property manager in respect of ESR-Reit and Viva Trust shall terminate on that date. 

For property management services rendered by the property manager in respect of ESR-Reit, it will be entitled to a property management fee of 2 per cent per annum of the gross revenue of the relevant property.

The fee schedule for marketing services, property tax services and project management services were also outlined in ESR-Reit's filing on Monday.

The Reit manager said: "The fees payable under each of the PMAs are competitive, and are within market norms."

Adapted from The Business Times 31 December 2018