Q A CapitaMall Aidemengdun strategy by capitalising on new acquisitions while monetising non-core matured assets. The proceeds generated from divestments will be deployed towards strengthening our balance sheet and seizing new growth opportunities. At the same time, we will continue proactively managing our retail assets to increase footfall by introducing innovative concepts through AEIs and space reconfigurations. To-date, our well-staggered AEIs across multiple assets have positioned us to ride the recovery of domestic consumption. We expect to realise the full benefits of our AEIs at CapitaMall Yuhuating, Rock Square and CapitaMall Grand Canyon in 2024, which will contribute to the improvement of our retail portfolio. With an emphasis on tier 1 and 2 cities, we will focus on the five core city clusters where our Sponsor, CLI, has a strong presence. Anchored in strong fundamentals and a well-balanced, quality portfolio, we will continue to generate sustainable value for our Unitholders. How will CLCT leverage synergies with its Sponsor and capture new opportunities? We leverage our Sponsor’s strong domain knowledge and work closely with them to ensure the quality of our portfolio performance and business fundamentals. By sourcing assets from our Sponsor’s pipeline as well as third party vendors, we can capture market opportunities that best suit CLCT’s investment objectives. At the same time, we can tap on our Sponsor’s broader operational network and relationships to drive leasing management and asset performances. In March 2023, the PRC government enlarged the country’s REIT market to include consumerrelated infrastructure, thus bringing retail malls under the umbrella of C-REITs. Later in the year, regulators approved the first batch of retail C-REITs. Three of the four have completed the pricing process and are preparing for listing, while two more applications have been accepted by the stock exchanges. This development not only stimulates market vitality but offers new opportunities for us to execute our reconstitution strategy. In collaboration with our Sponsor, we are carefully evaluating the best course of action to participate in China’s developing and rapidly growing domestic capital markets. ANNUAL REPORT 2023 23 Financials Framework Portfolio Performance Leadership Overview
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