Sasseur REIT is acquiring additional shop units at Sasseur (Hefei) Outlets for 98.3 million yuan, or around S$19.8 million, from a third-party seller, the REIT said Wednesday.
The proposed acquisition will increase the REIT’s ownership of Hefei Outlets to 81.2 percent from 77.8 percent by gross floor area, the REIT said in a filing to SGX after the market close.
The REIT’s distribution per unit is expected to increase to 5.179 Singapore cents after the deal, from 5.128 Singapore cents previously, the filing said.
The acquisition — the REIT’s first since its IPO in March 2018 — will be funded by existing cash, the filing said.
“The acquisition will provide us with greater scope and flexibility in undertaking asset management initiatives at Hefei Outlets and optimize the tenant mix over time, in addition to increasing the net income for Hefei Outlets,” Anthony Ang, CEO of Sasseur Asset Management, the REIT’s manager, said in the statement.
“This is a strategic and the first step for the enlargement of the Sasseur REIT portfolio, and we will make more yield-accretive acquisitions
when the right opportunity arises,” Ang said.
The shop units are around 6,134 square meters and are fully occupied, with a weighted average lease expiry of 5.4 years, the filing said.
The tenants include fashion brands, an indoor zoo, children’s entertainment facilities and food and beverage outlets, the REIT said.
Sasseur REIT said the acquisition is expected to be completed within 60 working days.
Hefei is the capital of Anhui Province.