• maximising property performance through pro-active 'hands-on' asset management, development management, property management and leasing;
• utilising Challenger Group's property expertise;
• attracting and retaining high quality real estate professionals;
• repositioning and/or development of assets for both retention and divestment purposes; and
• strengthening the portfolio via the acquisition and divestment of properties to generate net tangible asset (NTA) and/or earnings per Unit (EPU) accretive returns.

Core and value-add portfolio strategy
The CDI portfolio includes a combination of 'core' and 'value-add' properties.

The core properties are quality assets which are intended to be long-term investments by CDI.

The value-add properties are assets which, through repositioning and/or development, can enhance earnings and capital growth prospects. Upon completion of repositioning and/or development of value-add properties, these assets will either be held as a core property or be sold to realise gains.

CDI's core and value-add portfolio strategy is illustrated in the diagram below.

Investment policy
The Investment Policy for CDI is designed with the objective to enhance unitholder returns without adversely changing the risk profile of CDI.

The main elements of this policy are:

• To undertake refurbishment or development of properties, which may include risk mitigation strategies such as joint ventures, pre-commitments from tenants, pre-sale of development properties, fixed price and/or fixed time construction contracts or other measures.
• To acquire interests in domestic or offshore properties which:
• generate a sustainable income return;
  • generate NTA and/or EPU accretive returns;
  • are predominantly income producing assets in the office, industrial or retail property sectors; and
  • individually do not include any single asset representing more than 20% of the total portfolio value post acquisition.
• Properties are to be acquired at no more than fair value as determined by an independent qualified property valuer.
• All acquisitions shall be subject to due diligence on the properties, consistent with prudent market practice, in particular, to confirm that the property has:
  • no material compliance or statutory problems;
  • no material unmitigated environmental problems;
  • no material issues related to title or survey; and
  • no material legal impediments which may prevent ownership being transferred.
• In addition, to ensure a high standard of investment analysis, due diligence and ongoing management, offshore acquisitions will only be undertaken where suitable joint ventures have been established, or offshore real estate funds management platforms have been established or acquired, by the Challenger Group.
• Under circumstances where offshore acquisitions are undertaken by CDI, the Manager intends to implement a foreign exchange hedging policy. The Manager will review the investment and hedging policies from time to time and may amend the policies without the approval of Unitholders if the Manager believes it is justified.