Sasseur Asset Management, manager of Sasseur REIT, has turned down the acquisition of a mall offered by its sponsor.
Under its right of first refusal arrangement, the REIT has the first dibs to acquire the Sasseur (Xi'an) Outlets.
"The manager has considered the offer and is of the view that acquiring the property based on the proposed terms set out in the offer would not be accretive to Sasseur REIT’s DPU," reads its announcement.
The acquisition, if it goes ahead under those terms, will dilute both DPU and NAV.
In addition, the acquisition is not in line with the manager's key objectives to achieve long-term sustainable growth in DPU and NAV per unit, while maintaining an appropriate capital structure for Sasseur REIT.
"Accordingly, the offer is rejected," says the manager.
See also: OUE REIT's 2HFY2025 DPU up 10.6% y-o-y; eyes 'targeted opportunities' in Sydney
Nonetheless, the REIT will still "actively" look for other opportunities to diversify its portfolio, which is now fully concentrated within China.
Possible opportunities may include "selective investments, focused on South-East Asia and other compatible regions, where they present a clear path to enhancing long-term, sustainable value for unitholders."
Sasseur REIT closed at 69 cents on Jan 27, up 0.73% for the day and is up 2.99% in the past year.
