Suntec REIT's flagship property in Singapore, Suntec City. (Photo: REITsWeek)Suntec REIT's flagship property in Singapore, Suntec City. (Photo: REITsWeek)

Singapore-listed retail and office REIT, Suntec REIT (SGX:T82U) announced on 4 November that it has entered into a sale and purchase agreement with Maybank Kim Eng Properties to purchase and leaseback three floors of strata office space at Suntec Tower Two.

“The acquisition is expected to generate a net property income yield of approximately 3.9%”, said the REIT in its announcement.

Suntec REIT currently owns a net lettable area (NLA) of approximately 1.3 million square feet in Suntec City Office Towers, comprising of strata units in Towers One, Two and Three, and all strata units in Towers Four and Five. The REIT also owns the Suntec City retail and convention centre properties.

The acquisition and subsequent leaseback arrangement with Maybank Kim Eng Properties is expected to cost approximately SGD105.7 million including stamp duty and other acquisition fees and scheduled to commence by the end of November 2015.

Units of Suntec REIT finished 1.53% higher from its previous close on the Singapore Exchange to end at SGD1.66.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.