Suntec Real Estate Investment Trust (REIT) has invested £430.6m (€467m) to buy a 50% stake in an office-led mixed-use development project in central London from Canada Pension Plan Investment Board (CPP Investments).

The Singapore-listed REIT’s manager ARA Trust Management Suntec said it has bought the first phase of Nova Victoria from CPP Investments. CPP Investments sold its interest in the adjacent future development parcels within the broader Nova Victoria estate to Land Securities, in a separate transaction that completed in June 2020.

Nova Victoria is a five-building mixed-use development adjacent to Victoria mainline and underground stations.

Phase one of the Nova Victoria estate comprises two office buildings and a block of residential apartments and saw construction begin in June 2013 and completion in April 2017.

ARA said, excluding acquisition expenses, Suntec REIT paid £430.6m for the asset, representing a 1.2% discount to the latest independent valuation. 

CPP Investments said its net proceeds from the latest transaction are expected to be approximately C$720m (€456.8m).

Chong Kee Hiong, CEO of ARA Trust Management Suntec, said: “We are pleased to make our first foray into the UK with the acquisition of Nova, which is a strategic fit with Suntec REIT’s existing portfolio of high-quality commercial assets in Singapore and Australia.

“These two premium Grade A office buildings will enhance the resilience, diversification and quality of Suntec REIT’s portfolio.”

Tom Jackson, managing director, head of UK real estate, CPP Investments, said: “The sale of Nova Phase One is the culmination of a long-term and highly successful joint venture development project with Landsec, who remain a valued and trusted partner of CPP Investments.”

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