Suntec REIT has entered into sale and purchase agreements to acquire a 100% interest in The Minster Building for an agreed value of £353m.
The 11-storey Grade A office building with ancillary retail was built in 1990 with significant refurbishments designed by renowned architect Buckley Gray Yeoman completed in 2018.
The Minster Building has a committed occupancy of 96.7%. The office component is 96.2% leased and is occupied by quality office tenants from diversified sectors with a weighted average lease expiry of 11.3 years 9. The strong income stream from the office tenants constitute 93.4% of The Minster Building’s total rental income. Ancillary retail in The Minster Building which is fully leased comprising a restaurant / bar, a cafe and an upmarket gymnasium including a swimming pool. To protect the property’s income and ride out the current pandemic, there is a 2-year income guarantee for vacant spaces and retail leases and an c. 1-year guarantee for the co-working lease.
Mr. Chong Kee Hiong, Chief Executive Officer of the Manager, commented: “We are pleased to expand our footprint in London with the acquisition of The Minster Building. 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. The property has an income yield of 4.5%4 and long weighted average lease expiry of 12.3 years.”