The Manager plans to achieve Elite Commercial REIT’s objectives through the following key strategies:
Acquisition growth strategy supported by a rigorous research driven selection process and an extensive expertise in the UK with strong sourcing capabilities
The Manager will seek portfolio growth through the acquisition of quality income-producing properties across the UK used mainly for commercial purpose. The Manager will adopt a rigorous selection process focused on long-term sector trends and fundamental real estate qualities to ensure that investments are focused on the right locations that can provide attractive cash flows and yields and which fit within Elite Commercial REIT’s investment strategy to enhance returns to Unitholders and improve opportunities for future income and capital growth.
Active asset management and enhancement strategy
The Manager will actively manage Elite Commercial REIT’s property portfolio and will seek to drive organic growth in Revenue and Net Property Income and maintain strong tenant relationships. While at present, over 99.0% of Elite Commercial REIT’s Gross Rental Income is derived from a single tenant, nonetheless whilst growing Elite Commercial REIT’s portfolio, the Manager may, in future, source other tenants. The Manager has a proactive tenant management strategy which focuses on, but is not limited to, engaging existing tenants and growing with them, sourcing of high quality tenants with strong credit profiles such as government and government-related entities, optimising lease tenures to increase stability of income, maximising property cost efficiencies and striving to diversify tenant mix. The Manager will also regularly evaluate its properties to identify potential property enhancement or redevelopment opportunities that can improve and/or enhance Elite Commercial REIT’s income streams.
Prudent capital management strategy
The Manager will endeavour to employ an appropriate mix of debt and equity in financing acquisitions and asset enhancement. The Manager will also seek to optimise its cost of debt financing and utilise interest rate hedging strategies where appropriate, in order to minimise exposure to market volatility and maximise risk-adjusted returns to Unitholders.