Contact Us
Address: Unit No. 2001, 20/F,
68 Yee Wo Street,
Causeway Bay, Hong Kong
Tel: (852) 2805 6336
Fax: (852) 2577 8686
E-Mail: info@RegalREIT.com
   
(Stock Code: 1881.HK)
Organisation and Structure of Regal REIT
Regal REIT is a collective investment scheme established in the form of a unit trust under Hong Kong laws.

The REIT Manager, The Lessee, The Hotel Manager and The Trustee

The REIT Manager is licensed by the Securities and Futures Commission in Hong Kong to undertake the regulated activity of asset management.

The REIT Manager does not manage the investment properties of Regal REIT directly. Apart from the iclub Wan Chai Hotel, all the hotels are leased to, a wholly-owned subsidiary of Regal Hotels International Holdings Limited until 31st December, 2015, under long-term lease agreements. The lessee is responsible for the day-to-day running of the hotel businesses and has to that effect engaged Regal Hotels International Limited, as the hotel manager, under long-term hotel management agreements.

Regal Hotels International Limited has also been appointed as the hotel manager to operate iclub Wan Chai Hotel under long-term hotel management agreement for a term of 10 years from 1st January, 2011 to 31st December, 2020.

The Trustee of Regal REIT is DB Trustees (Hong Kong) Limited, a wholly-owned subsidiary of Deutsche Bank AG. In this role, the Trustee holds the assets of Regal REIT in trust for the benefit of the unitholders as a whole and oversees the activities of the REIT Manager for compliance with the Trust Deed and regulatory requirements.

Rental Structure and Market Rental Package of the Initial Hotels

Rental payments comprised of base rent and variable rent from RHIHL Lessee in accordance with the Market Rental Package.

Base Rent

Regal REIT receives rent in the form of a fixed cash base rent.

Variable Rent

Regal REIT receives variable rent through the sharing of aggregate profits from the hotels’ operations over their base rent payments.

Rent Reviews for 2016 to 2020

A rent review by an independent professional property valuer will take place for each of the years from 2015 to 2019 to determine the base rent, variable rent and the lessee’s contribution to the furniture, fixture and equipment reserve for the respective years from 2016 to 2020.

Revenue Structure of iclub Wan Chai Hotel

Hotel Portion

Gross hotel revenue and the associated operating costs and expenses are accounted for directly by Regal REIT.

Other Portions

Certain areas of the premises are let out to independent third parties which generate rental income to Regal REIT.

Revenue Structure of iclub Sheung Wan Hotel

Pursuant to the SW Lease Agreement, the RHIHL Lessee is obligated to pay rentals in respect of the iclub Sheung Wan Hotel to Regal REIT for the period from 10th February, 2014 to 31st December, 2019, which is extendable at the option of Regal REIT for a further five years.

Regal REIT receives fixed rentals for the leasing of the iclub Sheung Wan Hotel commencing from 10th February, 2014 to 9th February, 2017. Rental receipts for the first three years of the lease term have been determined to be HK$79.00 million, HK$82.95 million and HK$86.90 million, respectively. The Lessee is required to fund the actual costs of any FF&E during the first three lease years.

Market rental reviews will take place for each of the remaining periods of the lease term from 10th February, 2017 to 31st December, 2017, from 1st January, 2018 to 31st December, 2018 and from 1st January, 2019 to 31st December, 2019, respectively, and any extension thereof to determine the market rental packages, including the market rental components (comprising the Base Rent, Variable Rent and lessee’s contribution to the FF&E reserve) together with the amount of the security deposit required.

Revenue Structure of iclub Fortress Hill Hotel

Pursuant to the FH Lease Agreement, the RHIHL Lessee is obligated to pay rentals in respect of the iclub Fortress Hill Hotel to Regal REIT for the period from 28th July, 2014 to 31st December, 2019, which is extendable at the option of Regal REIT for a further five years.

Regal REIT receives fixed rentals for the leasing of the iclub Fortress Hill Hotel commencing from 28th July, 2014 to 27th July, 2017. Rental receipts for the first three years of the lease term have been determined to be HK$82.50 million, HK$86.625 million and HK$90.75 million, respectively. The Lessee is required to fund the actual costs of any FF&E during the first three lease years.

Market rental reviews will take place for each of the remaining periods of the lease term from 28th July, 2017 to 31st December, 2018 and from 1st January, 2019 to 31st December, 2019, respectively, and any extension thereof to determine the market rental packages, including the market rental components (comprising the Base Rent, Variable Rent and lessee’s contribution to the FF&E reserve) together with the amount of the security deposit required.

Regal REIT (a Hong Kong collective investment scheme authorized under section 104 of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong))