Company
Process
OriginationSourcing Investment Opportunities
Deal sourcing channels:
- Direct relationships with developers, brokers, asset owners
- Off-market deals from banks or distressed owners
- Public listings and auctions
- Internal pipeline (e.g., assets developed by a sponsor)
Preliminary filters:
- Direct relationships with developers, brokers, asset owners
- Off-market deals from banks or distressed owners
- Public listings and auctions
- Internal pipeline (e.g., assets developed by a sponsor)
Goal
- Build a qualified pipeline aligned with the REIT's return, risk, and ESG criteria.
Once a target is identified, the REIT team conducts detailed feasibility analysis and risk assessment:
EvaluationDue Diligence and Underwriting
Commercial due diligence
- Lease audit
- Occupancy/vacancy
- Re-leasing risk
- Rent reversions
Financial analysis
- NOI analysis
- CapEx and OPEX
- Stress testing
Legal and technical due diligence
- Title verification
- Permits, zoning
- Structural integrity
- Maintenance history
- ESG potential
Valuation & financing terms
- Appraisal by valuer
- Indicative bank terms
Outcome
- Investment committee memorandum and go/no-go decision
Upon approval, the REIT moves to execute the transaction efficiently:
ExecutionAcquisition, Structuring, Closing
Negotiation
- Signing LOI or Term Sheet
- Negotiating SPA and side agreements
Financing
- Securing debt financing
- Equity allocation
Structuring
- Acquisition via SPV under REIT umbrella
- Legal, tax, and regulatory compliance
Closing
- Final documentation, funding, title transfer
- Onboarding into REIT's asset and property management systems
Goal
- Acquire clean title and operational control with minimal execution risk
After acquisition, the REIT focuses on maximizing value and performance over the holding period:
Asset ManagementStabilization and Optimization
Leasing / tenant engagement
- Proactive lease renewals, rent reviews, and indexation
- Enhancing tenant retention
Operational efficiency
- CapEx planning
- Refurbishments, lobby upgrades, ESG retrofits
Cash flow management
- Regular NOI tracking
- Budgeting
Compliance and reporting
- Quarterly NAV updates
- investor reports, IFRS compliance
Goal
- Grow NOI and asset value to support distributions and REIT NAV
REITs aim to unlock long-term value through multiple levers:
Value CreationEnhancing Returns and Unlocking Upside
Rental growth
- Via CPI indexation, market rent reversion, and tenant mix upgrades
Vacancy reduction
- Filling underutilized space or converting to higher use
Cap rate compression
- Driven by macro tailwinds, REIT premium, or asset repositioning
ESG optimization
- Better ratings = better tenants, financing terms, and valuations
Active portfolio management
- Recycling capital: divest non-core assets and redeploy into higher-yielding ones
- Portfolio rotation based on sector trends and city-level dynamics
Exit options
- Hold for yield (long-term)
- Sell assets to institutional investors
- Refinance to release equity