Sasseur REIT property, Hefei Outlets. (Photo: Sasseur REIT)Sasseur REIT property, Hefei Outlets. (Photo: Sasseur REIT)

A wholly-owned subsidiary of Sassuer REIT is currently facing legal action in the Anhui Higher People's Court over construction costs.

The subsidiary, Hefei Sasseur Commercial Management Co Ltd, received notice on 13 September that Zhongjian Sanju No.2 Construction Engineering Co Ltd is claiming a sum of approximately RMB148.4 million (USD22 million), and other legal costs.

The claims arose out of a disagreement between the REIT’s sponsor, and Zhongjian Sanju No.2 over the final construction sum payable for Sasseur (Hefei) Outlets, which was completed in May 2016.

To read the full article, please login or subscribe.

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.