Elite Commercial REIT (the "REIT") is a Singapore real estate investment trust established with the investment strategy of principally investing, directly or indirectly, in commercial assets and real estate-related assets in the United Kingdom ("UK"). Listed on the Singapore Exchange Securities Trading Limited ("SGX-ST") on 6 February 2020, Elite Commercial REIT is the first and only UK-focused listed REIT in Singapore.
The REIT's portfolio ("Portfolio") comprises 155 predominantly freehold(1) quality commercial buildings located across the UK with an aggregate value of £517.7 million (2,3). The Portfolio has a total net internal area of approximately 3.9 million square feet and a total site area of approximately 72 hectares. Of the total portfolio, 58 of the properties were acquired on 9 March 2021 during the REIT's maiden acquisition.
The Portfolio offers a stable cash flow with over 99.0% of the gross rental income derived from the AA-rated UK Government and a long weighted average lease expiry of 5.2 years (2). All the leases are on full repairing and insuring (4) ("FRI") basis and a majority of them include rental escalations that are linked to the UK Consumer Price Index. The Portfolio is primarily occupied by the Department for Work and Pensions ("DWP"), the UK's largest public service department that is responsible for welfare, pensions and child maintenance. DWP is a uniquely resilient occupier and the Portfolio is part of the crucial public infrastructure through which DWP provides services to the community.
The REIT's key objectives are to provide Unitholders with regular and stable distributions and to achieve long-term growth in distribution and net asset value per unit, while maintaining an appropriate capital structure through disciplined execution of its key strategies.
The REIT is managed by Elite Commercial REIT Management Pte. Ltd., which is owned by Elite Partners Holdings Pte. Ltd. (68.0%), Sunway RE Capital Pte. Ltd. (15.0%) and Jin Leng Investments Pte. Ltd. (17.0%).
1. Of the 155 properties, 150 properties are freehold properties and 5 properties are on long leasehold tenures.
2. As at 30 June 2022.
3. Portfolio value is the fair value of investment properties (based on valuation report). The valuer’s opinion of value has reflected the £7.3 million of sustainability contribution made in 2Q 2022.
4. Under a full repairing and insuring lease, commonly known as triple net lease, the responsibility for the repair of the external and internal parts as well as the structure of the property is placed with the tenant.