Sasseur REIT buys additional Hefei Outlet shop units for $19.8m

The acquisition is said to be its first since its IPO.

Sasseur Real Estate Investment Trust (Sasseur REIT) has signed the sale & purchase agreements to acquire additional shop units with existing tenancies at the annex block of Sasseur (Hefei) Outlets from third-party vendors for a purchase consideration of approximately $19.8m (RMB98.3m), an announcement revealed.

The shop units acquired comprise a gross floor area (GFA) of 6,133.84 sqm and an occupancy rate of 100% as at 24 April. They also have a weighted average lease expiry (WALE) of 5.4 years, and its tenants include fashion brands, an indoor zoo, children’s entertainment facilities and food and beverage outlets.

The acquisition will increase Sasseur REIT’s ownership of the Hefei Outlets from 77.8% to 81.2% by GFA. According to the firm, the acquisition will be funded fully by existing cash and is expected to increase the REIT's distribution per unit (DPU) and net asset value (NAV) per unit from 5.128 cents and 90.33 cents to 5.179 cents and 90.37 cents, respectively.

The Hefei Outlets, which commenced operation in May 2016, is located in the High-Tech Industrial Development Zone.The outlets reportedly demonstrated strong operating performance, having outperformed its forecast since Sasseur REIT’s initial public offering (IPO) in 2018. Its YoY sales growth for FY 2018 showed an improvement of 53.9%, whilst actual FY 2018 sales outperformed its FY 2018 forecast by 9.6%.

The completion of the acquisition is expected to take place within 60 working days after the execution of the sale & purchase agreements.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia