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EC World Real Estate Investment Trust ANNUAL REPORT 2016
Asset And Rental Growth
The Manager employs a two-pronged approach to
grow its rental income and enhance value of the REIT
portfolio. It is actively scouring the market for yield
accretive acquisitions as well as constantly evaluating
the existing portfolio for opportunities to improve it.
Acquisition
Update on properties under Right of First Refusal (ROFR)
The REIT has access to a total of 316,420 sqm of gross
floor area under ROFR.
(i)
100,777 sqm comes from Stage 2 of Bei Gang
Logistics (Buildings No. 9 to 17) and
(ii)
215,643 sqm from Fuzhou e-commerce properties.
As of 31 December 2016, construction for Buildings
No. 9 to 14 in Stage 2 of Bei Gang Logistics have been
completed and Buildings No. 9 to 12 leased out. Stage 2
of Bei Gang Logistics, which is located next to Stage 1 of
Bei Gang Logistics, provides rental space for office and
O2O retail, targeting e-commerce tenants.
Construction of Fuzhou e-commerce properties was 80%
completed as at 31 December 2016 and it is expected to
be ready for leasing in 2018.
The Manager will also proactively identify potential
acquisition targets from the Sponsor and third parties by
leveraging on the networks and business relationships of
the Sponsor.
Portfolio Management
The Manager takes a proactive approach and constantly
reviews the portfolio assets to identify Asset Enhancement
Initiatives (“AEI”) to improve portfolio returns.
The enhancement to Chongxian Port Investment was
completed at the end of third quarter of 2016. Chongxian
Port Investment had 23 berths and 112,726 sqm of
storage yard prior to the upgrade. The upgrade converted
24,108.6 sqm of the storage yard into warehouse
space. Consequently, total income from Chongxian Port
Investment increased by 4.4% in October 2016.
LAI HOCK MENG
Executive Director and CEO