Our primary role as the manager of Ascott Reit (Manager) is to set the strategic direction of Ascott Reit and make recommendations to DBS Trustee Limited, in its capacity as trustee of Ascott Reit (Trustee), on any investment opportunities for Ascott Reit and the enhancement of the assets of Ascott Reit in accordance with the stated investment strategy for Ascott Reit. 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 Ascott Reit. Our primary responsibility is to manage the assets and liabilities of Ascott Reit for the benefit of the unitholders of Ascott Reit (Unitholders). We do this with a focus on generating rental income and enhancing asset value over time so as to maximise returns from the investments, and ultimately the distributions and total returns to Unitholders.
Our other functions and responsibilities as the Manager include:
The Manager also considers sustainability issues (including environmental and social factors) as part of its responsibilities. Ascott Reit’s environmental sustainability and community outreach programmes are set out on pages 54 to 57 of this Annual Report.
Ascott Reit, constituted as a trust, is externally managed by the Manager. The Manager appoints experienced and well qualified personnel to run its day-to-day operations.
The Manager was appointed in accordance with the terms of the trust deed constituting Ascott Reit and dated 19 January 2006 (as amended, varied or supplemented from time to time) (Trust Deed). The Trust Deed outlines certain circumstances under which the Manager can be removed, including by notice in writing given by the Trustee upon the occurrence of certain events, or by resolution passed by a simple majority of Unitholders present and voting at a meeting of Unitholders duly convened and held in accordance with the provisions of the Trust Deed.
The Manager is a wholly owned subsidiary of CapitaLand Limited (CL) which holds a significant unitholding interest in Ascott Reit. CL is a long-term real estate developer and investor, and has strong inherent interests in the performance of Ascott Reit. CL’s significant unitholding in Ascott Reit ensures its commitment to Ascott Reit and as a result, CL’s interest is aligned with that of other Unitholders. The Manager’s association with CL provides the following benefits, among other things, to Ascott Reit: