Investment strategy
CKT provides investors with exposure to an initial portfolio of quality Japanese retail properties managed by Kenedix, Inc. (Kenedix), a leading Japanese real estate fund manager. The Trust's investment strategy is to utilise and benefit from Kenedix's skills to enhance CKT's earnings and capital growth prospects. In particular Kenedix intends to provide value by:
- maximising property performance through pro-active,'hands-on' asset management, development management, property management and leasing;
- positioning both the properties and future acquisitions to maximise exposure to any recovery in the Japanese retail sector and broader property market;
- pursuing future acquisitions of assets located in areas where the investment fundamentals are supportive of CKT's growth objectives;
- undertaking development opportunities, either of existing assets or newly acquired land or assets. Such development exposure would generally be limited to 20% of CKT by asset value; and
- attracting and retaining high quality real estate professionals.
Whilst the current portfolio of properties comprise Japanese retail property assets, CKT may consider investment in other property sectors in Japan which are consistent with the Investment Policy of CKT detailed below.
Investment Policy
The Investment Policy for CKT is designed to enhance unitholder returns without adversely changing the risk profile of CKT. The main elements of this policy are:
To acquire interests in properties which:
- generate a sustainable income return;
- generate returns accretive to NTA per Unit and/or distributions per Unit;
- offer opportunities to create Unitholder value through redevelopment, repositioning or implementation of more efficient asset management practices; or
- are development projects where the risks associated with such projects can be reasonably mitigated through joint ventures, pre-commitments from tenants or other measures.
To hold interests in the form of:
- Trust Beneficiary Interests;
- freehold or leasehold title; or
- investment through one or more TKs or other entities which hold assets in the form of Trust Beneficiary Interests,
or freehold or leasehold title.
To acquire properties at or below the valuation of the property, as prepared by an independent valuation firm.
To make acquisitions subject to due diligence on the properties, consistent with prudent market practice, to ensure in particular that each 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.
The Responsible Entity will review its Investment Policy from time to time and may amend it without the approval of Unitholders if the Responsible Entity believes it is justified.