Corporate Governance


ESR-REIT, constituted as a trust, is externally managed by ESR Funds Management (S) Limited. ESR-REIT has no personnel of its own. ESR Funds Management (S) Limited appoints qualified and experienced executives to manage its operations.

The Manager is committed to maintaining high standards of corporate governance in line with the Singapore Code of Corporate Governance. The Board and Management believe that sound corporate governance policies and practices are essential to protect the assets of ESR-REIT and the interests of its Unitholders and to enhance the value of Unitholders’ investment in ESR-REIT.

The Manager has general powers of management over the real estate and real estate related assets of ESR-REIT. The Manager’s main responsibility is to manage ESR-REIT’s assets and liabilities for the benefit of the Unitholders. It sets the strategic direction of ESR-REIT and gives recommendations to the Trustee on the acquisition, property development, divestment and/ or enhancement of assets of ESR-REIT in accordance with its stated investment strategy. The Manager is also responsible for the capital and risk management of ESR-REIT. In executing its strategy, the Manager is responsible for ensuring compliance with the applicable provisions of the SFA and all other relevant legislation, including the Rules of the SGX-ST Listing Manual (“Listing Manual”), the Code on Collective Investment Schemes (including its property funds appendix (“Property Funds Appendix”)) and the Trust Deed.

The Manager also supervises the performance of the Property Manager to ensure that it meets its objectives pursuant to the property management agreement.

The Manager holds a Capital Markets Services Licence (“CMS Licence”) issued by MAS to carry out REIT management under the SFA. Under its CMS Licence, the Manager appoints relevant officers and staff as its representatives to conduct REIT management activities on its behalf.

This report describes the Manager’s corporate governance practices and structures that were in place during FY2016, to comply with the Code of Corporate Governance (“the Code”) issued by MAS on 2 May 2012. Any deviations from the Code are explained.

For more details on the Managers' corporate governance practices and structures, refer to page 76 of the annual report for the latest Corporate Governance Report.