REIT ASIAPAC
SASSEUR REIT : CHINA OFFERS POTENTIAL
Sasseur REIT ’ s real estate portfolio includes four retail outlet malls , all located in the People ’ s Republic of China . These include Sasseur Outlets in Chongqing , Bishan , Hefei , and Kunming .
In end-September 2020 , Sasseur REIT announced that its rental income recovered to 152 million RMB ( US $ 23.53 million ) in the third quarter , up 8.3 % from the previous quarter . Its listed units fell to a low of S $ 0.53 in March last year , but has since climbed to S $ 0.82 as at the end of January .
China is the largest luxury goods market in the world , and with many locals unable to spend on luxury goods outside of China due to Covid-19-related travel restrictions , the domestic spending on luxury goods has surged . This will benefit Sasseur REIT ’ s malls as our main customers
While China was the first country to have had experienced the devastating impact of Covid-19 , its strict and expansive lockdowns eventually paid off . The mainland ’ s economy is one of the few in the world that has reported growth in 2020 .
Anthony Ang , Chief Executive Officer of Sasseur Asset Management Pte . Ltd ., the manager of Sasseur REIT , tells ReitAsiaPac about China ’ s strong recovery and its implications for the REIT .
“ China is expected to be the only major economy to have grown in 2020 , thanks to its early recovery from the COVID-19 pandemic , and the Chinese government ’ s strategy of “ dual circulation ” to reduce dependence on exports and drive domestic spending .
Chong Quing Outlets Source : Sasseur REIT
are the homegrown middle-class , who remain the main drivers of domestic demand outlets .
Sasseur REIT continues to source and evaluate potential investment opportunities that are yield-accretive . In 2020 , Sasseur REIT ’ s sponsor - Sasseur Group opened two new outlets in Yangzhou and Xiamen , bringing the total number of outlets operated by Sasseur group to 13 , with 4 in the REIT portfolio . This expansion will provide a strong pipeline for future growth of Sasseur REIT . ”
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