Fund Strategy
Home About CPNRF Fund Strategy

CPNRF’s key objectives are to deliver stable distributions to unitholders and to achieve long-term growth in such distributions and the net asset value per unit of CPNRF. The strategies to achieve these objectives are set out below:

1. Asset Enhancement Growth Strategy

The Property Manager will pursue asset enhancement opportunities to increase income from the properties and increase the value of the properties by:

  • Improving tenant mix and zoning;
  • Diversifying tenant base to balance CPNRF’s portfolio exposure to volatile trade sector and to prevent excessive competition among tenants in the same trade sector;
  • Enhancing value of existing leasable area and creating more leasable area from unutilised space;
  • Increasing shopper traffic by improving accessibility; and
  • Focusing on improving advertisements and public relations to create good image of properties and attract shoppers.

2. Organic Growth Strategy

The Property Manager will proactively manage to develop strong tenant relationships and maintain and increase tenant retention rate in order to reduce vacancy levels and minimise interruptions in rental income and costs associated to leasing space to new tenants. Moreover, The Fund Manager and the Property Manager will work closely to minimise operating expenses and improve management efficiency.

3. Acquisition Growth Strategy

The Fund Manager, working with the Property Manager, will actively pursue acquisition opportunities in properties that will increase return on investment and net asset value of the Fund.

For a period of 7 years after the establishment of the Fund, CPNRF will have the Right of First Refusal on the acquisition of existing and future shopping malls and/or retail properties which CPN and/or any companies controlled by CPN intend to dispose with the condition that CPN and/or any companies controlled by CPN will retain the property management roles in such properties. However, CPN reserves the right to grant this Right of First Refusal to CPNRF in case that CPN is no longer the Property Manager of CPNRF.

The Fund Manager and the Property Manager will consider investment opportunities in properties based on return on investment, occupancy rates, quality of tenants, locations, potential for value creation, and conditions of land, buildings, engineering, utility, and environmental protection systems.

The investment of CPNRF will generally be for long term basis. However, in the future, where the Fund Manager and the Property Manager consider that any property has reached a stage of limited scope for revenue generation and growth, they may consider disposing such property and using the proceeds to invest in new properties with better growth potential.