With looming lease expiries coming up in about four years. Elite Commercial REIT has decided to expand its investment mandate beyond the office market.

Elite Commercial REIT is a Singapore Exchange (SGX)-listed but UK-focused owner of office assets, most of which are leased out to government agencies.

But soon, the REIT will invest in other types of assets in the UK, it announced on 15 April.

“Since its listing on 6 February 2020, Elite REIT has been benefiting from the resilient and thus defensive cashflow afforded by government tenancies”.

“Through the expansion of its investment strategy, Elite REIT will continue to focus on the social infrastructure asset sector, including its existing portfolio of Jobcentre Plus as well as government infrastructure and workspaces, whilst broadening its focus to other asset sectors in the UK”, it added.

For example, the REIT might invest in assets from non-discretionary sectors in the UK, such as the living sector, which includes purpose-built student accommodation and build-to-rent residential assets.

This would allow the REIT to benefit from favourable demand-supply dynamics in the UK’s living sector, which is exhibiting strong growth potential, it posited.

“The unique attributes and the strategic location of Elite REIT’s assets, which are highly accessible to key transportation nodes and amenities, is complementary to these asset classes”, it added.

With the expanded mandate, Elite Commercial REIT will change its name to Elite UK REIT in due course.

Elite Commercial REIT was last done on the SGX at GBP0.24, which presently implies a distribution yield of 14.25% according to data on the Singapore REITs table.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.