Sasseur REIT Secures RMB267 Million Onshore Loan for Hefei Outlet Refinancing

Key Highlights

• New Loan Facility: Sasseur Real Estate Investment Trust (Sasseur REIT), via its wholly-owned subsidiary Hefei Sasseur Commercial Management Co., Ltd, has entered into a new secured onshore term loan facility agreement for up to RMB267 million with a five-year tenure.
• Purpose of Loan: The facility will be used to refinance part of the existing onshore loan for Sasseur (Hefei) Outlet, which is due in March 2028, allowing for refinancing at a more competitive cost.
• Loan Conditions: The agreement contains specific provisions tied to the ownership and control structure of the subsidiary and the sponsor, Sasseur Cayman Holding Limited.
• Mandatory Prepayment Triggers: If certain conditions are breached, the lender can demand immediate repayment of the outstanding loan amount, including accrued interest.

Detailed Overview

Sasseur Asset Management Pte. Ltd., the manager of Sasseur REIT, announced that Hefei Sasseur Commercial Management Co., Ltd, which holds the Sasseur (Hefei) Outlet, has successfully secured an onshore loan facility of up to RMB267 million from a mainland Chinese lender. The facility has a tenure of five years and is intended for early refinancing of the subsidiary’s existing secured onshore loan, which is set to mature in March 2028. The new facility is expected to offer more competitive borrowing costs, which could enhance Sasseur REIT’s financial position and potentially benefit unitholders through lower financing expenses.

The utilisation of the new facility is subject to certain conditions stipulated in the Onshore Facility Agreement. Notably, the agreement includes provisions that make reference to the shareholding interests and control over the Onshore Borrower. Specifically, the following events would trigger a mandatory prepayment:

• If Hefei Sasseur Commercial Management Co., Ltd ceases to hold 100% interest in Sasseur (Hefei) Outlet.
• If Sasseur Cayman Holding Limited, the sponsor of Sasseur REIT, ceases to have effective control over the Onshore Borrower, whether directly or indirectly.

In the event of such a breach, the lender has the right to cancel the facility and declare all outstanding amounts, including accrued interest, immediately due and payable. There would be no additional fees, premiums, or penalties, but normal break costs may apply. If the facility is fully drawn, the outstanding amount at risk would be RMB267 million, excluding interest.

As of the date of the announcement, none of these conditions have been breached.

Key Takeaways for Investors

• Financial Flexibility: The new loan facility demonstrates Sasseur REIT’s proactive approach in managing its debt profile and refinancing risk, potentially lowering interest expenses and enhancing distribution yields for unitholders.
• Shareholder Risks: The mandatory prepayment events are significant. Any change in ownership or control of the Hefei property or the sponsor could trigger an immediate repayment obligation, which may impact Sasseur REIT’s liquidity and financial stability. Investors should monitor any corporate actions or changes in the sponsor’s shareholding closely, as these could have material impacts on the REIT’s financials and share price.
• No Immediate Breach: Currently, there are no breaches of these conditions, so the facility remains in good standing.
• Potential Price Sensitivity: The refinancing at a more competitive cost could be viewed positively by the market. However, the risk of mandatory prepayment linked to shareholding/control changes is a key risk factor that could be price sensitive if any such event occurs in the future.

Additional Information

The announcement reiterates that the value of Sasseur REIT’s units and the income derived from them may fluctuate. Units are not guaranteed or insured by the manager, the trustee, the sponsor, or any of their affiliates. Investments in Sasseur REIT units carry risks, including potential loss of principal.

Unitholders do not have the right to request redemption or purchase of their units by the manager while listed, and liquidity is dependent on trading activity on the SGX-ST.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell any securities. Investors are advised to conduct their own due diligence and consult with their financial advisers before making any investment decisions. The information presented is based on the announcement by Sasseur REIT as of 11 February 2026 and is subject to change without notice.

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