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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