Growth Strategies

CPNREIT’s key objectives are to deliver stable distributions to unitholders and to achieve sustainable growth in such distributions and the net asset value. CPNREIT is in a unique position to leverage expertise and experience of CPN REIT Management Company Limited as the REIT Manager and Central Pattana Public Company Limited as the Property Manager in managing retail real estate to achieve those objectives through the following strategies.
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.