Sasseur Reit rejects Xi’an mall offer from sponsor, targets South-east Asia for growth
Manager notes proposed acquisition will result in material dilution of DPU and NAV per unit, based on reasonable funding costs assumption
[SINGAPORE] Sasseur Real Estate Investment Trust (Sasseur Reit) has turned down an offer to acquire a retail outlet mall from its sponsor, said its manager on Tuesday (Jan 27).
The offer was made pursuant to a right of first refusal agreement, as the sponsor – Sasseur Cayman Holding – seeks for the property to be acquired by a commercial Reit to be established and listed on the Shanghai Stock Exchange.
The manager noted that acquiring the property, known as Sasseur (Xi’an) Outlets, based on the proposed terms would “not be in the best interests” of Sasseur Reit’s unitholders.
“Such acquisition will result in material distribution per unit (DPU) and net asset value (NAV) per unit dilution based on reasonable funding costs assumption,” said the manager in a bourse filing.
It added that the proposed acquisition is not aligned with its key objective to achieve long-term sustainable growth in DPU and NAV per unit, while maintaining an appropriate capital structure for the Reit.
However, Sasseur Reit will continue to actively pursue opportunities to acquire more assets aligned with its strategy.
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This includes prioritising expansion into vital growth markets outside of its current portfolio, targeting markets offering a clear opportunity to deliver enhanced long-term, sustainable value for its unitholders.
The latest third-quarter business update for the period ended Sep 30, showed that Sasseur Reit has four outlets in China with a portfolio occupancy of 98.5 per cent.
Key growth markets identified by the Reit manager include South-east Asia and “other compatible regions”.
“The manager expects that this sharpened focus going forward should enhance portfolio resilience, unlock new sources of income for Sasseur Reit, and deliver greater long‑term value to unitholders,” it said.
Units of Sasseur Reit closed 0.7 per cent or S$0.005 higher at S$0.69 on Tuesday, before the announcement was made.
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