THE MANAGERGrowth Strategies
- Develop a set of comprehensive strategies to ensure operational excellence by optimising asset performance, implementing prudent cost management and pursuing additional income opportunities
- Improve retail experience and tenant mix by continuously engaging both retailers and shoppers to understand their needs and provide an offering that can grow with the demands of the local captive community, creating stickiness to our malls
- Enhance rental income with potential upside through an established rental model that comprises an annual step-up of the base rent with rent payable based on the higher of the base rent or a percentage of the tenant’s gross sales turnover
- Introduce innovative marketing and promotional initiatives coupled with attractive loyalty programmes to draw crowds and encourage repeated spending
- Enhance assets to improve Unitholder returns by refurbishing and retrofitting the malls to elevate experience for both tenants and shoppers and to achieve better space efficiency and asset yield
- Drive new growth and achieve higher returns on investment from asset enhancement initiatives (AEI)
- Review space usage and transform unutilised space into revenue-generating areas, thereby optimising space productivity and revenue
- Evaluate opportunities through rigorous feasibility studies and due diligence from sponsor’s pipeline and external thirdparty vendors
- Review asset performance and unlock the value of assets at the optimal stage of their lifecycle to generate higher returns
- Recycle sales proceeds to acquire yield-accretive assets with robust income stream, strong potential for capital growth or good opportunity for asset enhancement
Sustainable portfolio growth is carefully crafted through an integrated strategy of proactive asset management, innovative value enhancement, disciplined portfolio reconstitution as well as prudent capital and risk management, all of which are honed through CapitaLand’s strong operating and management track record. This enables CRCT to enhance asset value and deliver sustainable income growth to Unitholders.
Proactive Portfolio Reconstitution
In order to deliver sustainable growth and superior value to our unitholders, CRCT diligently engages in proactive portfolio reconstitution – the strategic and timely acquisition, enhancement, and divestment of our assets – to optimise its portfolio.
We source for retail assets with high growth potential, especially properties located in the core Chinese city clusters where CapitaLand has an established presence. This allows CRCT to leverage off the retail leadership and in-depth local knowledge to manage and enhance the income-generating retail assets to extract maximum value for our Unitholders. At the optimal stage of the asset life cycle, we recycle our capital through the timely divestment of mature properties and reinvest the proceeds into new growth opportunities. This value-creation strategy allows CRCT to continuously grow and revitalise through the injection of new yield-accretive assets into the portfolio.
Prudent Capital & Risk Management
Key risks such as liquidity risk, credit risk and foreign currency risk are managed through disciplined capital stewardship, sound corporate governance and prudent risk management. We monitor our exposure to various risks by closely following established management policies and procedures. These risk management policies are reviewed regularly and carefully balanced with its benefits to ensure an acceptable balance between the risk and cost of managing these risks. We mitigate our capital risk by diversifying our funding sources, improving debt profile and optimising our capital structure. CRCT leverages on CapitaLand’s strong credit standing to secure competitive cost of capital for our retail mall operations and fund our expansion.
Leveraging On Capitaland’s Established Integrated Retail Property Platform
CRCT’s long-term growth potential is reinforced through the synergies we obtain by working closely with our committed Sponsor. Tapping on CapitaLand’s unique integrated retail real estate platform, we have access to the best of retail real estate management and capital management capabilities. We stand to benefit from our right of first refusal on the strong pipeline of high quality assets held under CapitaLand Group and its private funds.