ARA Asset Management’s Suntec REIT is set to buy the long leasehold to an 11-storey office building at Minster Court, EC3, for £353m.
The deal, for 3 Minster Court, reflected a net property income yield of 4.5%. The price represented a 4.6% discount to an April book value of £370m, according to the REIT.
The office complex, which measures 293,398 sq ft, is leased to 13 tenants and has a WAULT of 12.3 years. It is 96.7% occupied.
The property was bought from Ivanhoé Cambridge, in a sale and purchase agreement with its associated vehicles. The firm previously paid around £170m for the offices in 2015.
The deal includes income guarantees of around £2.2m, with respect to two years of gross rental for vacant spaces in the property, and around £4.5m relating to two years of gross rental for the retail leases and around a year for a co-working lease.
Chong Kee Hiong, chief executive and executive director of Suntec, said: “The Grade-A office development is a strategic fit with Suntec REIT’s existing portfolio and will enhance the resilience, diversification and income stability of Suntec REIT’s portfolio.”
Suntec made its first foray into the London market with its acquisition of a 50% stake in the Nova estate in Victoria, SW1, last year.
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