Strategies for
Sustained Growth
IREIT Global
annual report 2014
ABBA strategy
AB ("A" assets in "B" cities)...
...BA ("B" assets in "A" cities)
Assets
Core assets
• Modern building(s)
• Prime location(s)
• Long term lease(s)
• Tenant(s) with good lease
covenants
Core-plus assets
Possess most but not all of the qualities
on the left
Cities
Second-tier cities
First-tier cities
Expanding and growing IREIT as a global market
leader, is one of the top priorities for the Manager. The
Manager will seek to achieve portfolio growth through
the acquisition of quality income-producing properties
used mainly for office purposes that are aligned with
IREIT’s ‘ABBA’ investment strategy and fit within the
Manager’s investment criteria to enhance the return
to Unitholders and to pursue opportunities for future
income and capital growth.
ABBA Strategy atWork
In order to achieve this target, the Manager is actively
pursuing acquisition opportunities. The Manager firmly
believes in its ‘ABBA’ strategy. The goal is to invest
in income-producing properties with long-term letting
potential, namely in core assets in second tier cities and
core-plus assets in primary locations or first-tier cities.
In Germany, there are sevenmajor cities comprising the
major real estate markets and a multitude of secondary
cities with a variety of strong business activities.
Whereas, in the United Kingdom, London is the only
truly ‘A’ city, with all other metropolitan areas being
considered ‘B’ and/or ‘C’ cities.
Taking into consideration the type of asset class, and the
Manager’s asset management capabilities, the ‘ABBA’
investment approach is considered to be a resilient and
appropriate strategy to be rolled out across Germany.
IREIT’s investment process is spearheaded by the Chief
Investment Officer and Asset Manager (“CIO”). The CIO
spends most of her time working in Germany, while
dedicating part of her time to tracking the real estate
markets in other target investment countries such as
the United Kingdom.
The ‘ABBA’ Strategy
‘A’ properties in ‘B’ cities and ‘B’ properties in ‘A’ cities, known as the ‘ABBA’ strategy
