Page 10 - Build Strong Resilience in the Real Estate and Construction Sector

Sasseur REIT has an initial portfolio of four outlet malls strategically located in fast-growing cities in China,
namely Chongqing, Bishan, Hefei and Kunming. The first case of COVID-19 was reported in Wuhan in December
2019, but the severity of the outbreak was only felt in 2020. At the start of the year, the Chinese government
had already implemented a few movement restrictions and was considering more as the infection became more
widespread.

Sasseur REIT’s Sponsor, Sasseur Cayman Holding Limited, made the proactive decision in late January to
implement a temporary closure of the 11 outlet malls it owned, which included the four under Sasseur REIT’s
portfolio. In addition, health and safety measures were implemented at each mall and office location to prevent
infection among the workforce. As a result, the Sponsor and Sasseur REIT by extension have been fortunate to
report zero cases of infection of staff and mall tenants to date.

While the malls were closed, Sasseur REIT’s Manager, Sasseur Asset Management Pte Ltd, intensified its online
presence on its sales and social media platforms to keep VIP members and other customers engaged and
excited for the reopening of the outlet malls. This course of action also helped Sasseur REIT generate vital data
on the shifts in preference, lifestyle and needs of its customers, which better enabled the outlet malls and its
tenants to prepare for the reopening.

After obtaining approvals from the relevant local authorities, the four outlet malls under Sasseur REIT’s
portfolio were progressively reopened in early March. The online marketing and engagement had paid off, as the
combined sales from the four outlet malls on the day of reopening were extremely encouraging, comparatively
higher by 129 per cent to the corresponding dates in 2019. We recently also witnessed strong first-day sales
during its annual Spring Sales period in April. Combined first-day sales recorded for the four outlet malls located
in Chongqing, Bishan, Hefei and Kunming were RMB 47.2 million, 411 per cent higher than the first-day reopening
sales registered in March.

The outlet malls have implemented health and safety standards since resuming operations in March; all
customers, tenants and employees are required to wear face masks and undergo temperature screening when
entering the malls. Each mall has sufficient stock of face masks and disinfectants, and cleaning and sanitising of
facilities and public areas have also been stepped up as well.

Sasseur REIT’s outlet malls have long attracted shoppers for its wide and diverse range of off-season branded
goods at affordable prices. In addition, the unique lifestyle offerings which cater to all demographics of the family
unit have brought customers back time and time again. The outlet business is one retail segment in China that
has not seen a falloff in buying interest .

Mr. Anthony Ang, CEO, Sasseur Asset Management

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