L Catterton Asia: Retirement of Sasseur REIT stake ‘a normal course of action’

China yuan coins

L Catterton Asia’s retirement of most of its 58.86 percent deemed interest in Sasseur REIT is “a normal course of action for the fund,” and it remained confident in the REIT’s growth, the private equity firm said on Thursday.

The deemed stake is now at 1.36 percent, it said in a filing to SGX after the market close on Thursday. That was after a buyback exercise by the REIT sponsor, Sasseur Cayman Holding.

“We continue to strongly believe in the long-term growth prospects of Sasseur and the opportunities it offers to investors in terms of exposure to China’s fast-growing outlet mall industry,” said Ravi Thakran, chairman and managing partner of L Catterton Asia, in a press release on Thursday. “We will continue to support the company’s growth initiatives as a Sasseur shareholder.”

In a separate press release on Thursday, Sasseur REIT highlighted the private-equity firm’s continued support and the outlook for China’s outlet mall sector.

The REIT said that the outlet sector is showing the fastest sales growth among China’s retail segments, outpacing e-commerce.

It pointed to projections that China’s outlet sales would expand by around 25 percent annually for the next five years to around 640 billion yuan by 2030, which would make the mainland’s outlet industry the largest globally, outpacing the U.S.

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