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 profile – The credit standing of its
tenants and diversification of tenant base.
• Design and specification – 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; the overall
market outlook.
• Opportunity to add value – The potential to
increase rental/occupancy rates or enhance
value through selective renovations and/or
other enhancement works.
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Investment Risk
Investment risk arises when a-iTrust develops
existing land within the portfolio, acquires
new properties, or does not divest existing
investments 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 property and technical due diligence
prior to any new acquisition;
• Independent valuation as a guide to the
purchase price;
• Detailed evaluation of the impact of the
proposed acquisition on the portfolio income,
geographical and tenant diversification, and
lease expiry profile; and
• Review and approval of the investment by the
Investment Committee and Board of Directors.
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