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%. |