We also visited Xi’an Outlet Mall, which is part of the right-of-first-refusal (ROFR) pipeline for SASSR. The mall ranks among the top 20 outlets in terms of sales in 2021 and 2022- 23 in the Awards, placing it in the top 10 percentile of the total outlets in China, in our view. We believe this mall could be a good addition to SASSR’s portfolio given its dominant positioning in the northwest of China, diverse tenant base of 422 retailers, and F&B offerings making up 15% of sales. We estimate the valuation of this mall at c.S$500m-600m (comparable to 2022 independent valuation of Rmb3,129bn). SASSR’s strong balance sheet with gearing of 25.4% as at Sep 23, translates to a debt headroom of S$874m, assuming a maximum 50% guideline ceiling assumption, although we believe management is unlikely to boost leverage to this level.