25-02-2014, 07:30 PM
(25-02-2014, 03:08 PM)Investmentrealm Wrote: 130 millions of operating profit just on rentals?
How does the rental for sports hub works? Do they own the places?
AWARD OF BID
3.1 Agreements Entered Into
Pursuant to the award of the Bid, SMRT Alpha has today entered into the following agreements with Sportshub:
(a) the sub-lease (the “Sub-Lease”) setting out the terms of the lease of the Retail Area;
(b) the retail contract (the “Retail Contract”) for the management and operation of the Retail Area; and
© other ancillary agreements related to the Sub-Lease and the Retail Contract.
3.2 Sub-Lease
Under the Sub-Lease, Sportshub will lease the Retail Area to SMRT Alpha for a term of twelve (12) years commencing from the date on which the Retail Area is fully commissioned and ready for commercial and retail operations or activities (the “Commencement Date”).
The rent, payable by SMRT Alpha to Sportshub under the Sub-Lease, comprises fixed and additional rent components. In addition, service charges are also payable. The Sub-Lease provides that SMRT Alpha may sublet, underlet or licence to third parties the Retail Area or any part thereof subject to terms and conditions in the Sub-Lease.
3.3 Retail Contract
Under the Retail Contract, SMRT Alpha shall manage and operate the Retail Area for a term of twelve (12) years, unless the Retail Contract has been otherwise earlier terminated in accordance with its terms. The Retail Contract sets out the terms and conditions and standards of performance required of the management and operation of the Retail Area by SMRT Alpha.
SMRT Investments and Alphaplus, as shareholders of SMRT Alpha, are further required to inter alia provide a guarantee (the “Guarantee”) of up to S$15 million on a joint and several basis to Sportshub to guarantee the due and proper performance by SMRT Alpha of its duties and obligations under the Retail Contract. The Guarantee will only be effective upon certain conditions subsequent under the Retail Contract being met.
http://www.smrt.com.sg/Portals/0/PDFs/Do...rtshub.pdf