SINGAPORE (THE BUSINESS TIMES) – The trustee-manager of Keppel Infrastructure Trust (KIT) has proposed a brand new base price construction pegged to distributable revenue and a efficiency price construction pegged to distribution per unit (DPU) progress.
The transfer will assist the trustee-manager higher align its pursuits with the enterprise belief’s unit holders and assist KIT’s progress plans, it mentioned in a bourse submitting on Monday (March 28).
The trustee-manager is proposing its base price be amended to 10 per cent each year of KIT’s distributable revenue, versus its current base administration price of $2 million each year.
It has additionally proposed an adjustment of its efficiency price to 25 per cent each year of any improve in DPU, multiplied by the weighted common variety of issued models, as a substitute of the current 4.5 per cent efficiency price pegged to the belief’s revenue.
The trustee-manager’s acquisition and divestment price will stay unchanged at 0.5 per cent or 1 per cent of the acquired funding’s enterprise worth, and 0.5 per cent of the divested funding’s enterprise worth.
The proposed changes have been deemed by an impartial monetary adviser to be on “normal commercial terms and not prejudicial to the interests” of KIT and minority unit holders.
The trustee-manager’s audit and danger committee, together with administrators who’re thought of impartial from the matter, have subsequently beneficial that unit holders vote in favour of the proposed base price and efficiency price complement.
The new proposed price buildings will give the trustee-manager extra sources to handle KIT’s portfolio, bolstering its capacity to “optimise and create greater value”, the announcement mentioned.
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It will even improve the trustee-manager’s capacity to drive progress by means of new acquisitions and investments.
The trustee-manager famous that the proposed price construction has been broadly adopted by Singapore actual property funding trusts listed prior to now 5 years. The price quantum – as a share of belongings beneath administration, market capitalisation and income – is inside the market vary charged by chosen enterprise trusts, it mentioned.
Mr Jopy Chiang, chief govt of the trustee-manager, mentioned that the corporate will broaden its international attain and develop its expertise pool in funding origination, deal execution and portfolio administration.
“To this end, we are looking to establish offices in key overseas markets to create new synergies and increase deal flow, which will allow us to scale up faster and accelerate KIT’s growth plans,” he mentioned.
The trustee-manager has seen its workforce develop from seven staff since its itemizing in 2010 to 22 as at Dec 31 final 12 months.
Its portfolio as on the finish of final month stands at $4.6 billion, up from $760 million at its itemizing.
The trustee-manager will search unit holder approval for the proposed base and efficiency price amendments at a unprecedented basic assembly to be held on April 19.
Units of KIT closed 0.5 cent, or 0.9 per cent increased, at 56.5 cents on Friday.
