Sasseur REIT, whch is the only Asia-listed REIT owning premium outlets, said its sponsor has bought back REIT units on the open market in the past two days (17-18 July).

Maybank Kim Eng

Citi Research

Target price

90 c

95 c

Date of initiation report

7 June

19 June 2018

Sasseur Cayman Holding Limited bought  -- for the first time since the REIT listed on the Singapore Exchange in March this year -- 210,000 units for S$148,639 on Tuesday and 210,000 units for $149,218 on Wednesday.

The average purchase price of 70.92 cents per unit is far below the 80-cent IPO price.

The REITs' CEO, Anthony Ang, said: "My personal view is the purchase by the sponsor was a commercial decision which indicates that the valuation of the REIT is very attractive at this level."

With the purchase, the sponsor has raised its holding to 678,195,600 units, or 57.46% of the REIT, which owns four premium outlets in China.

This is a retail sector that sells to middle-income Chinese who seek branded goods at a discount.

Sales by such outlet malls in China are projected to grow even faster than e-commerce, at a CAGR of 
24% from 2016 to 2021,  according to China Insights Consultancy.

(For more, see: SASSEUR REIT: 8 things to know about retail platform growing faster than e-commerce)

Other news:

ChenZhen7.18Chen Zhen, Sasseur REIT's Head of Investor Relations, Compliance and Risk Management. Photo: CompanyOn 6 July, Sasseur REIT participated in the 12th  “Scaling New Heights” Asia Investment Forum 2018 at JW Marriott Hotel, Shenzhen, China.

The audience included more than 200 institutional and private investors, as well as private equity and public fund managers from various regions.

AnthonyAng shenzhen7.18Anthony Ang, CEO of Sasseur REIT.
Photo: Company
Anthony Ang, CEO of Sasseur REIT manager, said, “We are pleased to have this opportunity to present to and interact with market participants from both the Mainland of China and Hong Kong. The growing influence of Chinese investors means an increasing need for Singapore-listed companies such as ours to be proactive in our investor engagement efforts.

"With the retail outlet malls industry in China growing rapidly, supported by the r
esilient consumption of China’s middle-class population, we are confident of delivering on our commitment towards greater shareholder value for our unitholders."

You may also be interested in:

You have no rights to post comments

Counter NameLastChange
AEM Holdings2.3600.010
Best World2.4700.010
Boustead Singapore0.9650.005
Broadway Ind0.1290.001
China Aviation Oil (S)0.9200.015
China Sunsine0.4150.005
Delfi Limited0.9050.005
Food Empire1.2700.020
Fortress Minerals0.310-
Geo Energy Res0.310-
Hong Leong Finance2.490-0.010
Hongkong Land (USD)3.0700.040
ISDN Holdings0.3100.005
IX Biopharma0.043-
KSH Holdings0.250-
Leader Env0.0510.001
Ley Choon0.0460.003
Marco Polo Marine0.0660.001
Mermaid Maritime0.1410.003
Nordic Group0.340-
Oxley Holdings0.089-
REX International0.1370.001
Southern Alliance Mining0.4450.015
Straco Corp.0.5000.010
Sunpower Group0.2100.010
The Trendlines0.069-
Totm Technologies0.022-
Uni-Asia Group0.825-0.010
Wilmar Intl3.4800.030
Yangzijiang Shipbldg1.7800.060

We have 1249 guests and no members online

rss_2 NextInsight - Latest News