In Sasseur’s latest presentation of its 1Q2023 business updates, its manager has been able to term out and stagger its debt profile by refinancing almost all its loans. In prior slides, all of the loans were in one tower maturing on the same day. Now, Sasseur’s $455 million of loans are staggered, with $60 fixed rate loan from the sponsor maturing in 2024 with an option to extend for a further 12 months on mutual agreement; $207 million matures in 2026, and $188 million matures in 2028. The 2026 maturity comprises $125 million, US$54 million and a $10 million RCF tranche. These are likely to be offshore loans.
Refinancing assets in China is not straightforward. Four REITs and one property trust listed on SGX have China-only assets. They are CapitaLand China Trust (CLCT), BHG Retail REIT, EC World REIT (ECW), Sasseur REIT (Sasseur) and Dasin Retail Trust (DRT). Of these, DRT is a property trust styled as a business trust.
Sasseur owns four outlet malls in places such as Chongqing, Kunming and Hefei; ECW owns logistics assets including port logistics warehouses in Hangzhou, while DRT owns seven suburban malls in the greater bay area. Last year, BHG Retail REIT managed to refinance all its loans which matured on the same day. These loans are likely to mature during the first half of 2025.
