Ascott Residence Trust (ART) is a stapled group comprising Ascott Real Estate Investment Trust (Ascott Reit) and Ascott Business Trust (Ascott BT) pursuant to a stapling deed dated 9 September 2019 and each stapled security consists of one Ascott Reit Unit and one Ascott BT Unit and is treated as a single instrument.
Ascott Residence Trust Management Limited (Reit Manager) was appointed manager of Ascott Reit in accordance with the terms of the trust deed dated 19 January 2006 (as amended) between the Reit Manager and DBS Trustee Limited, as the trustee of Ascott Reit (Trustee). Ascott Business Trust Management Pte. Ltd. (Trustee-Manager) was appointed the trustee-manager of Ascott BT in accordance with the terms of the trust deed constituting Ascott BT dated 9 September 2019 (as amended) (collectively, Trust Deeds).
It should be noted that the Trustee-Manager was only incorporated on 2 August 2019 and Ascott BT only became a registered business trust on 30 December 2019. Accordingly, references to actions taken by the Reit Manager and the Trustee-Manager (collectively, Managers) should be read taking this into account.
We, as the Managers, set the strategic direction of ART and its subsidiaries on any investment or divestment opportunities for ART and the enhancement of the assets of ART in accordance with the stated investment strategy for ART. The research, evaluation and analysis required for this purpose are coordinated and carried out by us as the Managers.
As the Managers, we have general powers of management over the assets of ART. Our primary responsibility is to manage the assets and liabilities of ART for the benefit of the stapled securityholders of ART (Stapled Securityholders). 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 Stapled Securityholders.
Our other functions and responsibilities as the Managers include:
The Managers also consider sustainability issues (including environmental and social factors) as part of their responsibilities. ART's environmental sustainability and community outreach programmes are set out on pages 85 to 93 of the Annual Report.
ART is externally managed by the Managers. The Managers appoint experienced and well qualified personnel to run their day-to-day operations.
The Managers were appointed in accordance with the terms of the Trust Deeds. The Trust Deeds outline certain circumstances under which the Managers can be removed. In the case of Ascott Reit, by resolution passed by a simple majority, and in the case of Ascott BT, by 75% of Stapled Securityholders present and voting at a meeting of Stapled Securityholders duly convened and held in accordance with the provisions of the Trust Deeds.
The Managers are wholly owned subsidiaries of CapitaLand Limited (CapitaLand) which holds a significant stapled securityholding interest in ART. CapitaLand is a long-term real estate developer and investor, with a vested interest in the long-term performance of ART. CapitaLand's significant stapled securityholding interest in ART demonstrates its commitment to ART and as a result, CapitaLand's interest is aligned with that of other Stapled Securityholders. The Managers' association with CapitaLand provides the following benefits, among other things, to ART: