Sasseur REIT property, Sasseur (Chongqing) Outlets, in Chongqing City. (Photo: Sasseur REIT)

Sasseur REIT has obtained approval from the relevant local authorities to commence the reopening of Chongqing and Bishan outlet malls on 15 March 2020.

The REIT’s Kunming and Hefei outlet malls were reopened on 11 March and 13 March 2020.

Sasseur REIT halted operations at all four of its malls on 26 January, following the COVID-19 outbreak.

During the temporary closure period, Sasseur REIT continued to impose the fixed component of its income from the sponsor in accordance with the entrusted management agreement (EMA).

The REIT will also receive the variable component, which is pegged to actual sales.

“The fixed component, which forms the majority of distributable income, provides stable returns for investors”, said the REIT.

“Therefore, the manager is of the view that the financial impact to Sasseur REIT should not be material for the full year due to the relatively short closure period of approximately 7 weeks”, it added.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.