Sasseur Reit opens trading debut at S$0.805 after largest IPO in Singapore this year

An outlet mall in Chongqing which is part of the portfolio of Sasseur Reit.
An outlet mall in Chongqing which is part of the portfolio of Sasseur Reit. PHOTO: SASSEUR GROUP

SINGAPORE - China outlet mall operator Sasseur Real Estate Investment Trust (Reit) on Wednesday made its first appearance on the Singapore bourse - opening at S$0.805 per unit, above its offer price.

As at 10.31am on Wednesday (March 28), units in Sasseur Reit were still trading at its debut price with about 2.8 million units changing hands.

In a filing to the Singapore Exchange (SGX), Sasseur Asset Management, the manager of Sasseur Reit, announced that 1.18 billion units in the trust currently in issue and held by Sasseur Cayman Holding II (Cayman Holdco) were listed on SGX's mainboard.

In addition, BT earlier reported that the initial public offering (IPO) of Sasseur Reit attracted applications that represented more than 3.7 times the number of available units in the public tranche, according to ballot results on Tuesday.

The offering, which was priced at S$0.80 per unit, comprised 252.8 million placement units and a public tranche of 13.8 million units. For the public tranche, there were 2,832 valid applications for 51.4 million units that represented some S$41.1 million worth of valid applications.

Sasseur Reit, as Singapore's first Reit IPO this year, raised S$396 million in gross proceeds through its listing. This makes it the largest IPO in Singapore to date this year.

The trust has also secured S$182.8 million from 12 cornerstone investors including a unit of Chinese e-commerce giant and CKK Holdings, which owns Charles and Keith. These represent 228.4 million units at the offering price, or 46.1 per cent of the total gross proceeds.

Sasseur Reit will offer investors here exposure to Chinese outlet malls, being the first outlet mall Reit to be listed in Asia.

With an initial portfolio comprising four malls in Chongqing, Bishan, Hefei and Kunming, the Reit is forecasting a distribution yield of 7.5 per cent between March 1 and end-2018, and 7.8 per cent in 2019.

Said SGX's head of equity capital market (sectors), Simon Lim: "We are pleased to welcome Sasseur Reit, offering investors the opportunity to invest in PRC's fast-growing retail outlet mall sector, at a time when the market is experiencing high consumption levels and presents huge growth potential."

With a market cap of about S$944 million, the listing of Sasseur Reit brings the total number of Reits and property trusts listed on the SGX to 43, with a combined market cap of over S$93 billion.