Elite Commercial Reit expands investment strategy to other UK real estate asset classes

Elite : MXNU 0% Commercial Reit : MXNU 0% will expand its investment strategy to include other asset classes in the UK, particularly assets in the living sector.

The move will turn Elite Reit into a UK pure-play real estate investment trust (Reit), as it will delineate a clear geographic boundary in terms of operations, its manager said on Monday (Apr 15).

The manager said the Reit will continue to focus on the social infrastructure asset sector, including its existing portfolio of Jobcentre Plus, government infrastructure and workspaces.

“Elite Reit would be able to retain certain repositioned assets in favourable locations and would not be restricted to purely commercial real estate and real estate-related assets in the UK for its portfolio,” the manager said.

The move will also allow the Reit to capitalise on emerging market trends and sectors with strong potential for attractive yields or capital appreciation. It will be able to diversify its portfolio in terms of income stream, asset classes and tenancy.

It highlighted the living sector – which includes purpose-built student accommodation (PBSA) and build-to-rent residential assets – as one potential investment area.

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

It plans to tap the expertise and network of one of its sponsors, Sunway RE Capital, which owns a portfolio of five PBSA assets in four UK cities – Bristol, Manchester, Sheffield and Southampton – spanning more than 820 beds.

The manager plans to change the Reit’s name to Elite UK Reit “in due course” to better reflect its broadened investment strategy.

Elite Reit’s units closed flat at £0.245 on Friday.