INVESTMENT STRATEGY

KCR Residential REIT's objective is to acquire and manage a substantial rented residential property portfolio in the UK that generates both income flow and capital appreciation for Shareholders. The Company intends to prioritise the acquisition of special purpose vehicles containing one or more residential properties as this structure has inherent benefits for the REIT.

KCR currently invests solely in the UK. Overtime this may widen to include other regions with attractive residential market fundamentals such as Australasia and Germany.

KCR historically employed a “Buy to Rent” model of acquiring existing units at prevailing market prices. Looking forward, in addition to this, in order to reduce acquisition cost, and control quality, KCR intends to, also look to include a “Build to Rent” approach where it directly and indirectly develops residential units to rent out.

Direct development is where KCR directly acquires and develops raw land into completed residential units. This lowers the cost of acquisition per unit and therefore allows KCR to achieve a higher yield on assets it develops. KCR intends to build its investment in build to rent assets through strategic partnerships with homebuilders and other partners as appropriate.

KCR may also increase and strengthen its role in indirect development by taking equity positions in residential home builders. This could be in strategic partners or through new relationships.