Sasseur REIT has transferred a 116,432 square meter undeveloped land parcel in Kunming to its sponsor, Sasseur Cayman Holding, the REIT’s manager said Friday.
That was after the REIT successfully sub-divided a 150,920 square meter land parcel, for which Chinese authorities hadn’t allowed any subdivision of the land-use rights prior to the listing of the REIT, the REIT’s manager said in a filing to SGX.
The remaining 34,488 square meters of the land parcel is the location of Sasseur REIT’s Kunming Outlets, one of the REIT’s four outlet malls, the filing said, adding that was phase one of the development.
Sasseur REIT retains an option to purchase the Kunming phase two development on the transferred parcel once it is completed, the filing said.
The REIT did not receive any consideration for the transfer, because it didn’t pay the sponsor for the phase two land, which it hadn’t intended to acquire or to use for development as that would be outside its investment strategy, the filing said.