Introduction of performance linked portion to the asset management reward structure
Remuneration paid by Ooedo Onsen Reit Investment Corporation to the Asset Manager consists of management fee I, management fee II, acquisition fee, disposition fee, and merger fee.
|Management fee I||Total assets at end of previous accounting period(Note1) × 1.0% per annum (ceiling)|
|Management fee II||Management fee II for previous accounting period × (DPU before deduction of current period management fee II/DPU before deduction of previous period management fee II) × management fee II revised ratio|
|Acquisition fee(Note 2)||Acquisition price × 1.0% (ceiling) (transaction with related party: 0.5% (ceiling))|
|Disposition fee||Disposition price × 1.0% (ceiling) (transaction with related party: 0.5% (ceiling))|
|Merger fee||Appraisal value at the time when a merger takes effect X 1.0% (upper limit)|
|(Note 1)||Subject to adjustment for asset acquisitions and asset dispositions during the relevant calculation period.|
|(Note 2)||Where the sum calculated for an acquired asset is less than 5 million yen, the acquisition fee is set at 5 million yen.|
Flowchart of decision-making in asset acquisition and disposition with related party.