Suntec to Makes Acquisition in London

News about Suntec REIT

Taking advantage of a cheaper British Pound and the current economic slump, Suntec REIT is planning to acquire a 50% stake in an office property with attached retail space in London, UK.

The leasehold property, completed in 2016 & 2017, comprises two Grade A office buildings (Nova North and Nova South) and a residential tower with retail space (The Nova Building - the residential space not being part of the transaction). Its land lease expires in 3062 and has about 51,900 m² of total lettable area.

With 35 tenants, the property has a 100% committed occupancy and a NPI yield of 4.6%, with a long WALE of 11.1 years.

The transaction is done on an agreed property value of £430.6 million (totaling about S$773.9 million after adding fees), which the manager expects to finance through debt, pushing leverage to 45.2% and making the operation DPU accretive.

Suntec REIT
Price1.450 SGD
NAV2.089 SGD
Yield (4 quarters)5.52%
Gearing41.3%