Key Investment Strategies
The Manager intends to achieve the investment objectives of IGB Commercial REIT through the following strategies :
1. Proactive asset management and asset enhancement strategy
The Manager will actively manage IGB Commercial REIT's property portfolio to maintain and improve the operational performance of the Subject Properties, seek to optimise the rental rates and Occupancy Rates of the Subject Properties to achieve growth in net property income as well as value of the Subject Properties. The Manager will also look to drive organic growth, encourage strong relationships with the tenants of the Subject Properties, implement asset management strategies with the aim of ensuring continued relevance of the Subject Properties and facilitate property enhancement or redevelopment opportunities that can improve and/or enhance IGB Commercial REIT's income streams.
2. Potential yield accretive investments and acquisition growth strategy
The Manager will seek to achieve portfolio growth through income-producing properties that fit within IGB Commercial REIT's investment strategy to enhance returns to Unitholders and to pursue opportunities that are potentially yield accretive for future income and capital growth. Whilst IGB Commercial REIT has an initial property portfolio in Kuala Lumpur, the Manager will continuosly evaluate opportunities in cities which the Sponsor has a presence and take a considered approach in deciding whether IGB Commercial REIT should pursue these opportunities. In evaluating future acquisition opportunities, the Manager will seek acquisition opportunities that may enhance the diversification of the portfolio by location and tenant profile.
3. Capital and risk management strategy
The Manager will endeavour to employ an appropriate mix of debt and equity to finance acquisitions. The Manager will also seek to optimise its cost of debt financing and utilise interest rate hedging strategies, where appropriate, in compliance with the REIT Guidelines, to optimise risk-adjusted returns to Unitholders.