Singapore's Suntec REIT has inked a £353 mln (€411 mln) deal for a prime London office property, the Minster Building, according to the REIT's manager ARA Trust Management.
The 11-storey asset which also includes ground-floor retail was built in 1990 and refurbished three years ago. The yield is 4.5%.
Ara Trust's CEO, Chong Kee Hiong, described the acquisition as a 'strategic fit' with Suntec's current investment strategy.
The retail element is fully let, while the office is occupied by a range of tenants, bringing the property's overall occupancy to 95.7%. The weighted lease term to expiry is 11.3 years.
Hiong added: 'The proceeds from divestments and the recent perpetual securities issuance have improved our financial flexibility and enabled us to pursue growth opportunities for high quality and accretive assets in good locations.'
Suntec announced at the same time that it was divesting offices in its prime Singapore mixed-use development, Suntec City Office. The strata units are being sold for around S$197 mln, an 8% premium on the independent valuation, and with a yield of 3.1%.
Following the deals, the REIT will still be 85% exposed to office assets, with properties in Singapore, Australia and the UK.
