Suntec City Mall blocks Singapore. Education Images/Universal Images Group via Getty ImagesSuntec REIT, which includes Gordon Tang, a tycoon, as one of its largest shareholders, has agreed to purchase an office building in London at 353 million pounds ($489million) as part of its diversification strategy.Suntec's second investment in the UK will be the acquisition of the Minster Building near London. Suntec also holds a 50% share in Nova Properties, which owns two Grade A office buildings in London's West End.The tower, which is 11 stories tall, was constructed in 1990. It was renovated in 2018. The Grade A office building has an ancillary retail area. Its gross floor area is 230,000 sqft (21,367 sq meters). It generates an income yield 4.5%Chong Kee Hiong (CEO of Suntecs manager ARA Asset Management) stated that the grade A office development was a strategic fit for Suntec REITs existing portfolio. It will increase the resilience, diversification, and income stability Suntec REITs portfolio.Suntec's latest investment in London is in conjunction with its recent increase in asset sales in Singapore. The REIT announced the Minsters acquisition Tuesday. It also stated that it will be selling strata units at its Suntec City office near Marina Bay for S$197m ($146.5 million).Suntec, which owned 30% of UBS Singapore headquarters, sold to SingHaiyi Group for S$295.5 Million earlier this month. This listed real estate company is controlled by Tang and Celine.Chong stated that Suntec's financial flexibility was improved and that perpetual securities issuances of S$150million and divestments have supported the group's strategy to pursue growth opportunities. He added that the Minster Building yields higher than the divested assets.The Tangs acquired Suntecs stake at the UBS building, giving them full control. Suntec developed the asset with SingHaiyi Haiyi, a private company owned by the couple.SingHaiyi is the brother of George W Bush and was the one to submit the highest bid for the En-Block Purchase of Maxwell House in Tanjong Pagar, near Raffles Place, for S$276.8 Million.The Tangs were ranked No. 38 at the time of publication of the Singapore Rich List in August 2020. Suntec, the couple's largest asset, has a net worth $940 million. It owns prime properties within the city's financial district.
