Kevin Smith, of API Capital and portfolio manager of the TAMIM Asia Small Companies Fund, highlights one of the stocks in the Asia Small Companies portfolio.
Champion REIT is a trust formed to own and invest in income producing office and retail properties in Hong Kong. The trust’s focus is on Grade-A commercial properties in prime locations. The trust currently offers exposure to 2.93 million square feet of prime office and retail floor area by way of two landmark properties in Hong Kong, Three Garden Road and Langham Place, one on each side of Victoria Harbour.
Accounting, Strategy and Governance Comments
Champion REIT is provides excellent exposure to office and retail commercial property in Hong Kong. The trust is well managed with a sensible capital structure and clear strategy for the future. There are good prospects for the significant discount to asset value to move closer to underlying NAV over time. There are no concerns from an accounting perspective and we like the fact that the manager opts to receive 50% of their fee in the form of units in the trust.
Value, Momentum and Quality Comments
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TAMIM Asset Management provides general information to help you understand our investment approach. Any financial information we provide is not advice, has not considered your personal circumstances and may not be suitable for you.