Singaporean buyer pays £430m for 50% of London’s Nova

Singapore-based Suntec REIT is to pay £430.6 million for a 50% stake in an office and retail asset in London’s Victoria. Suntec REIT is buying its share in the assets, known as the Nova Properties and comprising Nova North, Nova South and The Nova Building, from  Canada Pension Plan Investment Board.

The remaining 50% interest in the Nova Properties will be retained by Land Securities Group which developed the property and is its asset manager. The assets were completed in 2016 and 2017, and have an area of 559,000 sq ft.

Suntec REIT CEO Chong Kee Hiong said that the assets will, “enhance the resilience, diversification and quality of Suntec REIT’s portfolio with income contribution from high quality office tenants and long weighted average lease expiry of 11.1 years.”

He said that the net property income yield is 4.6% and there is a two-year guarantee on the retail income, “which will provide rental protection to ride out the current pandemic”.

The acquisition boosts Suntec REIT’s assets under management from S$10.7 billion5 to S$11.5 billion across a total of 10 properties in Singapore (77.2% of AUM), Australia (16.1% of AUM) and the United Kingdom (6.7% of AUM).