Suntec REIT has completed a £353m deal to buy the Minster Building, EC3, from Ivanhoé Cambridge.
Asset manager ARA Dunedin, which controls Suntec in Singapore, carried out the deal to buy the 11-storey, 293,000 sq ft grade-A office block on Mincing Lane. It will also manage the building.
Suntec’s acquisition follows a major refurbishment of the site in 2018, which led to a BREEAM Very Good rating. It includes outdoor terraces, bicycle parking, a gym and swimming pool.
It has a weighted average lease term to expiry of just over 12 years, and is multi-let to 10 office and three retail tenants, including insurer Charles Taylor, review website Trustpilot and fashion company Lyst. Office tenants make a 93% contribution to the building’s income.
It is the second major London acquisition that Suntec and ARA Dunedin have made in the space of a year, after taking a 50% stake in the Nova Estate in Victoria, SW1, in December 2020.
Roun Barry, chief executive of ARA Dunedin, said: “We are pleased to have supported Suntec REIT in this acquisition, which further enhanced the resilience and income diversity of Suntec REIT’s portfolio.
“It is testament to our belief that offices will continue to play a major role that this deal was negotiated at a time when there were international travel restrictions in place.
“We see London’s commercial property market as continuing to generate strong performance. Supply shortages of high-quality grade-A assets coupled with London’s status as the world’s leading financial and innovation hub will ensure strong capital inflows and continued demand in office space.”
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