Strategies for
Sustained Growth
IREIT Global
annual report 2014
Strong Financial Standing
The Manager has adopted a careful and prudent capital
management approach to maintain a strong balance
sheet. TheManagerwill establish newrelationshipswith
different financial institutions as a strategy to diversify
the source of funds. While doing so, theManager will tap
into funds from diversified sources.
In order to achieve its aim of further strengthening
and building upon IREIT’s stable financial position,
the Manager will employ an appropriate mix of debt
and equity in financing acquisitions. It will also adopt
financing and hedging policies, when and if appropriate.
The Manager will actively manage interest rate
fluctuations and foreign exchange exposure for IREIT
by adopting strategic hedging policies to optimise risk-
adjusted returns to Unitholders. To the extent possible
and appropriate, all borrowings are to be in the relevant
local currency. This will provide a natural hedge against
foreign exchange risk. The Manager will implement a
policy of proactive interest ratemanagement in order to
manage the risk associated with changes in the interest
rates on loan facilities. They will also seek to ensure that
IREIT’s ongoing cost of debt capital remains competitive.
At this current time, IREIT is unrated and as such the
maximumpermitted aggregate leveragewill be nomore
than 35% of the value of the deposited property. This is
in line with the Code on Collective Investment Schemes
Appendix 6 – Investment: Property Funds. TheManager
will consider obtaining a credit rating for IREIT when
the need arises. Upon obtaining and disclosing a credit
rating, the maximum permitted aggregate leverage
will increase to 60%. However, the Manager intends to
adopt a prudent approach by maintaining an aggregate
leverage ratio of not more than 45%.
People & IREIT
Building up a REIT is as much about the people who
make it a success, as it is about the REIT. The Manager
has a capable team with the right mix of expertise,
experience and proven track record to manage the
REIT. The Manager is fully committed to its core aims
and strategies. In order to fulfil IREIT’s objectives the
Managerwill leverage on its extensive business network.
The Manager is committed to investing in the
development of its team through on-the-job and
professional training, performance incentives, and team
building exercises.
Strategic Business Partners
IREIT is supported by its strategic partner, Shanghai
Summit Pte. Ltd. (“Summit”), a Singapore-incorporated
company that is ultimately owned by Mr Tong Jinquan,
founder of Shanghai Summit (Group) Co., Ltd. (“Summit
Group”) and a 20-year veteran in property investment,
development and management. Summit is experienced
and well-connected in the real estate industry, and the
Manager believes that Summit will be able to bring its
expertise to IREIT’s growth strategy.
In addition, IREIT also has support from its other
substantial Unitholder, Mr Lim Chap Huat, co-founder
of Soilbuild Group, a leading integrated property group
with close to four decades of operating history.
To demonstrate their support for the growth of IREIT,
the Sponsor, Sella Holdings Pte. Ltd. together with its
strategic partners, Summit Group andMr LimChapHuat,
have each granted a right of first refusal to IREIT, subject
to certain conditions. This gives IREIT access to future
acquisition opportunities in Europe.
IREIT’s excellent assets, team and strategy provide
the ideal conditions for the Manager to deliver on its
commitment to grow IREIT to the next level.
