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We pursue acquisitions that provide attractive cash fows and yields relative to a-iTrust’s weighted
average cost of capital. When evaluating investment opportunities, we seek acquisitions that
enhance the diversifcation of the portfolio and optimise risk-adjusted returns to unitholders.
Third-party acquisitions
We have targeted Bangalore, Chennai, Hyderabad, Mumbai, Dehli, Gurgaon and Pune for new
acquisitions. These cities were chosen because of their sound infrastructure, sizeable pool of
talented workforce, and substantial economic base.
When sourcing for quality third party properties, we leverage on Ascendas Group’s presence in
India and access to market information to gain a competitive advantage with respect to identifying,
evaluating and acquiring properties.
We focus on the following criteria when evaluating new acquisitions:
Location – its proximity to residential developments, social infrastructure, and access to public
transportation and skilled workforce;
Tenancy profle – the credit standing of its tenants and diversifcation of tenant base;
Design and specifcation – the quality of the property, including its size, age, and state
of maintenance;
Land title and land tenure – whether there are disputes or claims over the title, and remaining
tenure of land;
Rental and capital growth prospects – its passing rent and capital value compared to comparable
properties, and the overall market outlook; and
Opportunity to add value – the potential to increase rental/occupancy rates or enhance value
through selective renovations or other enhancement works.
Investment risk
Investment risk arises when a-iTrust develops existing land within the portfolio, acquires new
properties, or does not divest existing properties when it is timely to do so. Such risks encompass
market risk as well as the impact of the investment on the existing portfolio.
We adopt the following measures to mitigate investment risk:
A research-driven investment approach focusing on the relevant national macroeconomic outlook,
analysis of the relevant micro real estate markets (including supply and demand, vacancy and
rental), and detailed asset analysis;
Detailed due diligence prior to any new acquisition; and
Detailed evaluation of the impact of the proposed acquisition on the portfolio income,
geographical and tenant diversifcation, and lease expiry profle.
Acquisition strategy