The Company will pursue its investment objectives by investing in a diversified portfolio of Irish commercial property.
In building the Portfolio, the Directors pay particular focus to Well-tenanted Commercial Real Estate located in the Geographic Target Market. The Company has defined each of those elements as follows.
The Company is also permitted to forward finance properties where (a) there is an agreement with a tenant to lease the property upon completion of the works, the quality of which is determined to be aligned with the Company’s investment criteria; (b) planning permission has been granted in respect of the property; and (c) the aggregate forward finance arrangements entered into by the Company do not exceed 20 per cent. of the Company’s total assets at the time of entering into the relevant forward financing arrangement.
The Company may from time to time, undertake planning, intensification, unit consolidation, unit division, modernisations, and redevelopments in respect of properties, where the Directors believe it will enhance future income generation and capital values. The Company will not, however, be entitled to acquire land for speculative development of offices or industrial assets except where it forms part of the demise of a property that otherwise satisfies the Company’s investment criteria.
The Company will seek to use gearing to enhance investment returns. Aggregate borrowings are not expected to exceed a REIT LTV Ratio of 25 per cent. The Directors intend to maintain gearing at all times well within the thresholds stipulated by the Irish REIT Regime, namely an overall REIT LTV Ratio of 50 per cent., and a debt service minimum ratio of 1.25:1 for Property Income plus Finance Costs to Finance Costs.
The Company may use derivatives for efficient portfolio management, and in particular, it may engage in full or partial interest rate hedging or otherwise seek to mitigate the risk of interest rate increases on borrowings. The Company will not enter into derivative transactions for speculative purposes.
Cash held for working capital purposes or received by the Company pending reinvestment or distribution will be held on its behalf in Euro only and invested in cash, cash equivalents, near cash instruments and money market instruments.
The Directors will at all times conduct the affairs of the Company so as to enable it, to the extent possible, to comply with the Irish REIT Regime.
Any material amendment to the investment policy will only take place with the approval of Shareholders. If there is any breach of the Company’s investment policy, the Company will announce details of that breach and the remedial action it proposes to take in order to rectify it through a Regulatory Information Service.