Fund Overview

The Singapore established Fund will target assets with leases backed by strong tenant covenants to create a high-quality diversified portfolio that can generate stable and secure income distribution with potential for further capital appreciation.

Managed by AEP Investment Management Pte Ltd (AEPiM), the Fund is able to take advantage of the core skill set of the fund manager and its Shariah real estate expertise.


Investment Strategy

1. Income Focused

  • Initial investments into properties backed by long term leases
  • Strong tenant covenants that can generate a stable dividend yield in excess of 5%
  • Asset selection based on improving or emerging local growth prospects within the selected target markets

2. Enhanced Returns through Active Management

  • Subsequent investments into assets with strong capital gain potential
  • Investment strategy will involve proactive leasing and refurbishment works to maximize asset value
  • The Fund will however, not undertake any direct form of development risk

3. Portfolio Diversification

  • Invest into business space assets such as CBD office, suburban office and business parks across key global markets
  • Target markets with expanding opportunities of investable commercial real estate, stable long term economic and real estate market trends
  • Maximum 40% of the fund’s equity will be invested into any single country

4. REIT Exit

  • Aspires to be listed as a public REIT by 4th year of Trust life on the basis that a capital markets exit enhances the fund’s investment performance
  • Achieved by assembling a portfolio that is substantially differentiated from the existing REITs in terms of credit quality, security of income (long WALE) and ownership tenure (freehold vs. leasehold)
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