Dasin Retail Trust's Shiqi Metro Mall. (Photo: Dasin Retail Trust)

Singapore-listed but China-focused retail landlord, Dasin Retail Trust, announced late on 16 June that it will be acquiring Shiqi Metro Mall in Zhongshan, Guangdong for a purchase consideration of RMB1.224 billion (SGD248.2 million).

The purchase consideration represents a discount of approximately 57.8% to the average appraised value of the property as at 31 March 2017 as given by two independent valuers, Savills and Colliers, said the trust.

Dasin Retail Trust has not indicated a reason as to why it has managed to secure the property with such a hefty discount in its statement on the acquisition.

Shiqi Metro Mall features a gross floor area of 119,681.95 square metres across seven storeys including two basement floors.

The property, which primarily targets the mid-income household sector in Zhongshan, features an occupancy rate of 99.9% as at 31 March 2017.

The acquisition will be funded by debt, and is expected to raise Dasin Retail Trust’s leverage to 30.8%, from 24.7%.

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By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.