L Catterton makes partial exit from China mall operator Sasseur

According to a filing, the transaction reduces L Catterton's position in a Sasseur-sponsored real estate investment trust (REIT) from about 59% to 1.4%. The size of the private equity firm's divestment in Sasseur itself, however, remains unclear.

Shares in the REIT, which listed in Singapore in March, fell slightly following announcement but have since recovered to S$0.68 apiece. DBS Bank said in a stock report on October 12 that while the deal did not impact operations, its execution within six months of the REIT being listed was "sentiment negative."

"We continue to strongly believe in the long-term growth prospects of Sasseur and the opportunities it offers to investors in terms of exposure to China's fast-growing outlet mall industry," said Ravi Thakran, a managing partner at L Catterton Asia, said in a statement. "We will continue to support the company's growth initiatives as a Sasseur shareholder."

Sasseur estimates that the outlet mall segment in China is the country's fastest-growing retail category, including e-commerce. In a release, it projected the market to expand at 25% a year for the next five years to about RMB640 billion ($92.5 billion) in size by 2020. This would establish China's outlet mall market as the largest globally.

L Catterton invested $100 million in the company in 2015 when the GP operated under the name L Capital Asia. At the time, Sasseur operated four outlet malls in three cities and planned to achieve a portfolio of 20 by 2020. As of December 2017, it was managing nine malls in eight cities. Sasseur REIT recorded an approximately 9% rise in sales between March and June to S$193.3 million ($140 million).

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• Topics
• Greater China
• Consumer
• Exits
• China
• L Catterton
• Real estate