"The Company's primary objective is to provide attractive long term sustainable returns to shareholders that adequately reflect the risk in the Company's property portfolio and the implementation of its key investment strategies."�

Kermadec's key investment strategies are outlined below:

Active Management
The Manager is dedicated to perform its management duties to a high standard and establish and actively manage its relationships with key tenants and market participants to optimise total shareholder returns.

Portfolio Diversification
The Company intends to manage its risk exposure to any particular tenant, property type or location by holding several properties, with a particular focus on the key Auckland market. The Company intends to acquire over time a portfolio of well located, Auckland CBD office and carpark properties.

Long Term Investment View
The Company intends to seek acquisition opportunities involving new, refurbished, and well maintained properties, or properties that will provide shareholders with enhanced returns through value-add or development activity. Other critical investment considerations include the Company's focus towards quality tenants, and properties in strategic locations that provide the prospect of sustainable yields.

Development
The Company will undertake refurbishment and redevelopment of existing properties to maintain their investment quality and competitive position in the leasing market. In addition, the Company considers investments in land with a view to completing its own developments where opportunities arise and risks can be appropriately managed or mitigated. Approximately 5% of the portfolio value may be held in land development or other non income producing opportunities.

Financial Discipline
The Company takes a prudent yet flexible approach to managing its financial position, with the overriding imperative of providing attractive sustainable long term returns to shareholders. The company will limit bank borrowings to not more than 50% of total assets, with 35% being the long term target level.