We will continuously review Sabana REIT's portfolio and identify non-core/non-performing assets for divestment. Sales proceeds will be recycled and redeployed to pare down bank loans, to fund asset enhancement initiatives ("AEI") and/or fund yield accretive new acquisitions particularly in the high specification industrial assets and business parks.
As we identify core investment properties that can provide good rental growth opportunity, we will allocate funds for AEI with the aim to improve circulation, efficiency and rentable areas so as to enlarge the revenue base. This is expected to have a positive impact on valuations and an accretive outcome towards growing Sabana REIT's DPU.
While Singapore remains as an important investment base, we want to expand our investment footprint outside Singapore eventually to diversify earnings and bring portfolio stability. We want to capitalise on longer WALE tenancies, longer land tenures and opportunity to participate in key growth markets internationally. Key sectors of interest include logistics, high-tech assets and business parks. All potential acquisitions (locally or regionally) will be thoroughly reviewed with the necessary due diligence and relevant risk profiles taken into consideration.
We will employ an approximate mix of debt and equity in financing acquisitions and AEI, and utilise profit rate and currency hedging strategies where appropriate. We will continue to be proactive in expanding our base or relationships with bank in order to access greater pool of financing options to optimise risk-adjustment returns for Unitholders. We will also review our risk management policies and systems regularly, to reflect changes in market conditions and Saban REIT's strategic direction.