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Corporate Governance

REPORT FOR THE PERIOD FROM 1 APRIL 2016 TO 31 MARCH 2017

Good corporate governance is ingrained in the core values of Ascendas Funds Management (S) Limited, the manager of Ascendas Real Estate Investment Trust (Ascendas Reit) and encompasses the implementation of best practices and structures, internal checks and balances, transparency and compliance in Ascendas Reit.

The Manager believes that effective corporate governance is critical to its performance and the success of Ascendas Reit. The Manager remains focused on complying with the principles and requirements of prevailing legislation, regulations and codes (relevant regulations) (including the Code of Corporate Governance 2012 (the Code) issued by the Monetary Authority of Singapore (the MAS) in Singapore).

This section sets out the existing corporate governance practices of Ascendas Reit with reference to the Code and relevant regulations. Where there are deviations from the principles and guidelines of the Code and relevant regulations, an explanation has been provided in this section.

THE MANAGER OF ASCENDAS REIT

The Manager was appointed in accordance with the terms of the Trust Deed constituting Ascendas Reit dated 9th October 2002 (as amended) (the Trust Deed).

Pursuant to the Trust Deed, the Manager’s main responsibility is to manage Ascendas Reit’s assets and liabilities for the benefit of unitholders of Ascendas Reit (Unitholders).

The Manager sets the strategic business direction of Ascendas Reit and makes recommendations to HSBC Institutional Trust Services (Singapore) Limited as the trustee of Ascendas Reit (the Trustee), on acquisitions, divestments and enhancement of the assets of Ascendas Reit. The Manager is also responsible for the capital and risk management of Ascendas Reit. Other key functions and responsibilities of the Manager include:

  1. conducting all transactions on behalf of Ascendas Reit at arm’s length, using best endeavours;
  2. developing and implementing Ascendas Reit’s business plan and budget;
  3. ensuring compliance with prevailing rules and regulations, such as those contained in the Listing Rules of Singapore Exchange Securities Trading Limited (SGX-ST), the Code on Collective Investment Schemes (CIS Code) including the Property Funds Appendix issued by the MAS, the Capital Markets Services (CMS) licence for REIT Management issued by the MAS, the Securities and Futures Act, Chapter 289 of Singapore (SFA), as well as the Manager’s obligations under the Trust Deed;
  4. ensuring the execution of works by the appointed property manager, Ascendas Services Pte Ltd (the Property Manager), that provides property management, marketing and project management services for the properties held by Ascendas Reit, pursuant to the relevant property management agreement; and
  5. maintaining a framework of prudent and effective controls which enable financial, operational and compliance risks to be assessed and managed.

In executing its responsibilities towards Ascendas Reit, the Manager has adopted a set of internal guidelines and financial regulations which set out approval limits for, amongst others, capital expenditure, new investments and divestments, and the operation of bank accounts.

All the directors of the Manager (the Board or Directors) are competent and experienced individuals who have considerable experience in the real estate industry and/or other relevant fields of business. The Board oversees the Manager and ensures that the interests of the Unitholders are always upheld over the interests of the Manager and the Manager’s shareholder/sponsor, being the Ascendas-Singbridge Group (the Sponsor).


For the full report, please refer to our annual report here.