Case Studies

Greater China Logistics REIT

Through participation in the IPO of SF REIT, the first logistics-related REIT listed in Hong Kong, Skymont gained exposure to a modern logistics property portfolio operated by SF (and with around 80% of the space tenanted by SF’s affiliates), a leading force of change in promoting a sustainable ecosystem for the China logistics industry.   

SF Holding  2030 Carbon Reduction Target and Pathway

In its 2021 Carbon Target WhitepaperSF Holding envisions to achieve its ambitious 2030 “55% / 70%” carbon reduction and green transformation targets via renewable energy adoption, technological innovation and green supply chain cooperation over 2021-2030:

SF Holding — 2021-2030 Carbon Target Achievement Process Map
SF Holding — 2021-2030  pathway to carbon reduction 

SF REIT Portfolio  The Sustainability Perspective

SF REIT comprises a modern logistics property portfolio strategically located within regional key logistics hubs and near major transportation infrastructure in the Greater China region.  The current portfolio consists of +300,000 sqm of high-spec warehouse facilities equipped with automatic sorting and supply chain support facilities, efficiently supporting the local trade and economy.

 Photo credit: SF REIT Global offering
  • Sample Asset: Asia Logistics Hub – SF Centre | Tsing Yi, Hong Kong
  • Gold rated LEED-certified modern industrial building recognized for its sustainability design features:
  • 5-storey logistics property with  vehicular ramp access to all warehouse floors 
  • Large and regular floor plates, high ceilings and wide column spacing, allowing for optimal spacing utilization
  • Advanced ventilation, fire fighting and sprinkling systems
  • Energy-efficient building materials
  • Convenient access to arterial roads and major business districts in Hong Kong, and major transportation infrastructure in the Greater Bay Area 

Sustainability Guidelines

Introduction

Skymont Capital (Skymont) is an international investment manager that invests on behalf of its client-investors in private real estate and real estate related assets and businesses. Skymont is a fiduciary for its clients and regards its primary responsibility to maximize investment returns for its client-investors subject to the confines of its management agreements with clients. Skymont believes that sustainability factors should be considered as they have the potential to impact value to its investments to varying degrees across asset classes, markets, jurisdictions, and time. Skymont commits to integrating sustainability initiatives in the context of fulfilling its fiduciary responsibilities.

Purpose

This Sustainability Guideline is designed to:

(I)Define Skymont’s perspective toward sustainability

(II)Provide Skymont’s employees with guidelines regarding the implementation of the sustainability principle when evaluating and managing investments and partnerships

(III)Communicate with clients, vendors and other stakeholders how Skymont shall integrate sustainability considerations into its investment management, partnership formation and vendor selection processes, and which sustainability factors Skymont may weigh over the processes while remaining focused on maximizing long term investment performances

Skymont believes incorporating sustainability considerations into various aspects of our investment management process will help us better fulfill our fiduciary responsibility to our investors, creating and preserving lasting value.

Investment

Skymont applies ESG integration to its investment decision making. When assessing a potential investment, sustainability is an important dimension of its due diligence process. For each deal under scrutiny, Skymont’s sustainability considerations behind it include but are not limited to natural resources preservation, clean energy adoption, local community empowerment, health and wellbeing enhancement, etc. Skymont targets to deliver sustainable returns and minimize ESG risk exposure, while trying to create positive environmental and societal impacts. Since the outbreak of Covid-19, Skymont has actively adopted various digitalization tools to digitize its sourcing and due diligence efforts (e.g.,virtual site inspections, meetings), which has increased work efficiency while reducing expenses and carbon footprint.

Operation and Reporting

Operation and reporting comprise two important pillars of Skymont’s portfolio management:

By partnering with the best-in-class operators and creating specialized operating platforms that best understand the respective market and sector, Skymont has been facilitating best practices in the operation of its investments, creating value and driving performance therein.

Skymont has maintained a rigorous fund stewardship and a transparent reporting process supported by institutional fund infrastructure, promising peace of mind to our investors that they continuously have timely access to an accurate view of our investment performance.

Partners, Vendors and Tenants

Skymont believes in the power of working together to achieve synergy, and has integrated sustainability considerations into the assessment and choice of its potential partners, vendors and tenants, and regularly communicates on and promotes the sustainability principle with its existing partners, vendors and tenants to encourage alignment in practice. Most of Skymont’s existing partners and vendors have explicit sustainability policies in place, and are sustainability practice leaders in their respective fields, often recognized by preeminent ESG awards.

For both existing and potential partners, vendors and tenants, Skymont adopts an approach of fairness and integrity in the interest of fostering long term relationships.

Company Culture and Employee Training

Skymont believes its employees are vital to the implementation of its corporate strategy and to ensuring sustainable business success. Therefore, Skymont continuously engages and empowers its employees by maintaining a lean decision structure that fosters employee involvement and creativity, and encouraging lifelong learning and brainstorming with innovative minds both inside and outside the traditional real estate world. Skymont believes this will keep itself uniquely competitive in formulating strategies and decisions that shall capitalize on the long-term trends. Meanwhile, Skymont also supports ESG learning for its employees to ensure that ESG integration starts from the doorsteps of our office.

Looking Ahead

Moving forward, Skymont looks forward to furthering its commitment to the sustainability principle by systematically integrating more ESG dimensions into its investment management and operational processes.

Skymont will take a holistic approach in its investment selection process that shall seek sustainable returns, minimize ESG risk exposure that can create positive environmental and societal impacts to the surrounding world. Meanwhile, Skymont will continue to improve its operating performance and reporting transparency.