Selective and prudent acquisition of additional properties that meet our investment criteria to enhance yields and returns while improving portfolio diversification.

• Capitalise on strengths of two (2) of Sentral REIT sponsors. We will pursue acquisitions of suitable assets from third parties as well as leverage on the strengths and network of our sponsors.
• Acquisitions. We will embark on an acquisition strategy to make acquisitions of commercial properties in Malaysia to grow and diversify Sentral REIT’s initial portfolio. We will continue to actively explore acquisition opportunities that would enhance the quality of Sentral REIT’s portfolio and generate higher returns to unitholders. The focus is on good quality properties with strong recurring rental income and potential for revenue and capital growth.
• Portfolio Management. We intend to hold Sentral REIT’s investments on a long-term basis. However, at the appropriate time, we will recommend an adjustment of the portfolio mix through acquisition or sale of one or more of the Authorised Investments or commercial properties with the objective of maximising total returns to unitholders. The proceeds from such a sale would be either redeployed to purchase other attractive Authorised Investments or, in the absence of appropriate investments, distributed to unitholders.

We intend to implement strategies with the objective of enhancing the attractiveness of Sentral REIT’s existing commercial space and correspondingly maximising returns through increased net property yields, via active asset management.

We intend to increase the property yield of existing commercial space and correspondingly maximising returns from the existing commercial space by implementing the following:

• Maximising tenant retention;
• Diversifying tenant base;
• Proactive marketing plans;
• Continued minimisation of property expenses; and
• Undertaking asset enhancement.

We aim to optimise Sentral REIT’s capital structure and cost of capital within the borrowing limits set out in the REIT Guidelines and intend to use a combination of debt and equity to fund future acquisitions and improvement works.

Our capital management strategy involve:

• Adopting and maintaining an optimal gearing level; and
• Adopting an active interest rate management strategy to manage the risks associated with changes in interest rates.