Sasseur REIT expands footprint on Hefei Outlets with RMB98.3 million acquisition

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Sasseur REIT is acquiring additional shop units at the annex block of Sasseur (Hefei) Outlets for RMB98.3 million (SGD19.8 million).

The units are being acquired from third-party vendors, and have existing tenancies.

The purchase consideration represents a discount of approximately 4.1% compared to the units’ valuation.

The shop units being acquired feature gross floor area of 6,133.84 square metres, with an occupancy rate of 100.0% as at 24 April 2019.

The units 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 F&B outlets.

The acquisition will increase Sasseur REIT’s ownership of the Hefei Outlets from 77.8% to 81.2% by gross floor area.

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 acquisition will provide us with greater scope and flexibility in undertaking asset management initiatives at Hefei Outlets and optimise the tenant mix over time, in addition to increasing the net income for Hefei Outlets”, said Anthony Ang, CEO of the REIT’s manager.

Sasseur REIT last changed hands on the Singapore Exchange at SGD0.79.

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