Growth Strategies

Objective of CPNREIT
The objective of CPNREIT is to invest in the core properties by means of purchasing and/or leasing and/or sub-leasing and/or accepting transfer of leasehold rights and/or sub-leasehold rights of properties. CPNREIT shall seek benefits from such core properties in the form of rental and service fees, or any other income of similar nature. In addition, CPNREIT will engage in modification, change, enhancement of potential, development and/or disposal of assets for the purpose of generating income and returns for the interest of unitholders in the long run. CPNREIT also aims to make additional investments in core properties for the purpose of continuous growth of its income base, as well as to invest in other assets and/or securities and/or seek interests by any other means in compliance with the securities law and/or any other applicable laws.
1. Asset Enhancement Growth Strategy
Active asset management can increase property income and value through:
  • Improving tenant mix and zoning to provide exceptional retail experience
  • Diversifying tenant base to balance exposure to volatile trade sectors and to prevent excessive competition among tenants in the same trade sector
  • Optimizing leasable area and maximizing the use of common area
  • Improving accessibility to increase shopper traffic
  • Upgrading amenities
2. Organic Growth Strategy
The REIT Manager works closely with the Property Manager to deliver stable organic growth through:
  • Developing strong tenant relationships to increase tenant retention rate; as a result, reduce vacancy levels and minimize interruption in rental income and costs associated to leasing space to new tenants
  • Optimizing rental structure by balancing combination of fixed rent with embedded step-up growth and turnover rent with minimum guarantee to capture upside potential with sales of tenants and protect downside risk
3. Acquisition Growth Strategy
The REIT Manager works closely with Property Manager to pursue acquisition opportunities in new properties that will increase return on investment and net asset value of CPNREIT.
The REIT Manager keeps monitoring and considering investment opportunities in new properties based on return on investment, occupancy rates, quality of tenants, locations, potential for value creation, and conditions of land, buildings, engineering, utility, and environmental protection systems.
CPNREIT generally has long term investment horizon. However, the REIT Manager may consider disposing any property with limited scope for revenue generation and growth, and using the proceeds to invest in new properties with better growth potential.