The Manager intends to achieve its objective through the implementation of the following strategies:
Active asset management strategy
The Manager will strive to build long-lasting relationships with the Master Lessees, the underlying tenants and the Trust's tenants and will work closely with the Property Manager, to implement pro-active policies and measures to enhance and improve the Properties' operational performance, thereby increasing the yields and mitigating re-leasing risks of the Properties. In particular, focus will be on regular engagement with tenants, achieving early renewal commitments, effective marketing of vacant units and carrying out asset enhancement projects renewal commitments, effective marketing of vacant units and carrying out asset enhancement projects.
Acquisition growth strategy
The Manager will source for and pursue acquisition opportunities of quality income-producing business space properties that provide attractive cash flows and yields to enhance returns to Unitholders and potential for future income and capital growth.
Capital and risk management strategy
The Manager will employ an appropriate mix of debt and equity in financing acquisitions, developments and asset enhancements, secure diversified funding sources through both capital markets and financial institutions, utilise interest rate hedging strategies to reduce market volatility exposure and minimise its weighted average cost of capital while maintaining a strong and robust balance sheet.
The Manager will selectively undertake development activities, including built-to-suit developments, which have the potential to enhance the value of Soilbuild REIT's portfolio. The Manager will leverage on the capability and successful track record of the Sponsor in carrying out its development activities
The Manager may consider the divestment of non-performing assets to free up or recycle capital for re-deployment towards higher yielding growth opportunities as and when appropriate.