SHANGHAI — L Capital Asia, the private equity arm of LVMH Moet Hennessy Louis Vuitton S.A, is investing more than $100 million in China’s Sasseur Cayman Holding Limited, a developer specialized in outlet malls.

“We plan to spend the investment on new business expansion in China, in tier one and tier three cities as well as tier one,” said Kevin Jiang, vice president for commerce resource and strategy at Sasseur, confirming the L Capital investment and the more than $100 million sum.  “We are focusing on developing new business models involving online-to-offline.”

 

L Capital later issed a release stating that it was buying a “significant” minority stake in Sasseur. It also said that an affiliate of Warburg Pincus, an existing shareholder of Sasseur, also participated in the investment in Sasseur. It did not provide financial details of the transaction.

Sasseur chairman and president, Vito Xu has announced new projects in the pipeline, with a new mall in Hefei slated to open later this year, and projects in Xian, Guiyang, Kunming to open by end of 2016. Future projects in Fuzhou, Taiyuan, Nanzhou, Jinan, Nanning and Xiamen “actively in discussion,” he said.

Sasseur Group, which started ten years ago as a small apparel brand, currently owns three outlet mall developments in Chongqing and Hangzhou with a fourth opening in Nanjing at the end of this month.

“We have always been faithful in the future of the outlet market,” said Xu. “Full price retail is suffering, even for many of the luxury brands, their sales are dropping but we are growing very strongly in the market, which is extremely amazing in this kind of economic environment.”

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