We are creating a portfolio comprising modern warehousing, light industrial and higher value assets (including cold storage and e-commerce distribution facilities) which are well-located with good sustainability credentials, and which will benefit from a low structural void rate and relatively low-intensity asset management requirements. These assets will be concentrated in the strongest regional capital cities which have attractive property market characteristics, including good growth prospects, limited supply availability, and where we can achieve critical mass.
We believe that such a portfolio should deliver attractive, low-risk income-led returns with above-average rental and capital growth when markets are positive, and show resilience in a downturn.
We aim to enhance these returns through development, seeking to ensure that the income 'drag' associated with holding land does not outweigh the potential benefits. This should generate an attractive, income-orientated total property returns which, if underpinned by an efficient overhead structure and relatively modest financial leverage through the cycle, should translate into attractive total shareholder returns.
While we expect to retain most of our properties for the long term, we aim to sell assets at the right stage of both an asset's life cycle and the overall market cycle in order to generate proceeds which can be recycled into opportunities with a more attractive risk-return profile.