Sasseur REIT: Sponsor bought additional units to show ‘confidence’

China yuan coins

Sasseur REIT’s manager said on Tuesday that its sponsor, Sasseur Cayman Holding, purchased additional units in the China outlet mall REIT “as a demonstration of ongoing confidence in the business prospects.”

The sponsor purchased an additional 600,000 units in a market transaction on Monday, via Sasseur Cayman Holding II, with the shares held through Haitong International Securities (Singapore), it said in a separate filing to SGX on Tuesday.

That brought its deemed stake to 57.55 percent, up from 57.5 percent, it said.

Sasseur REIT’s statement said the share purchase was a show of confidence, adding that despite weak global market sentiment, the REIT’s fundamentals and its outlook were strong.

“The sales of the REIT’s four portfolio outlet malls have been growing strongly, with double-digit sales figures recorded during the anniversary sales season alone,” Anthony Ang, CEO of Sasseur REIT manager, said in the statement on Tuesday.

“Operationally, we have been delivering on our initial targets and outperforming sales estimates, both on a forecasted and historical basis. With the strong business fundamentals for the outlets, Sasseur REIT is well-positioned to deliver good sustainable returns for its unit holders,” he added.

The REIT also noted that China’s government has introduced initiatives to boost domestic consumption, including income tax reforms, e-commerce laws, lower import tariffs and enforcing an official overseas tariff, which it said should contribute to a more favorable outlet retail outlook for its malls.

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