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Origination

Snapshot Of Alternative Sourcing Strategies

Strategy Core Value Added Opportunistic
Total return expectation 6-8%. 8-11%. 15%+.
Leverage <40%. 40-60%. >60%.
Timing Highly sensitive to market cycle. Sensitive to market cycle. Less sensitive to market cycle.
Market access Competitive bid. Competitive bid. Mainly off market.
Risk Minimal leasing risk, lease expiries and capex requiremenents. Modest leasing and vacancy risk. May include modest refurbishment. May include refurbishment and ground-up development risk.
Holding period Long term hold(10 years +). 5-7 years. Short term (2-3 years) with active trading strategy.
Driver of Value Income growth. Balance between income and capital. Mainly driven by capital appreciation.
Income driver >60%. 50%. <50%.