ARA’s Suntec REIT buys stake in U.K. offices from CPPIB for $560m

Suntec REIT, for which ARA Trust Management serves as manager, and its partner HSBC Institutional Trust Services have acquired a 50 percent interest in two class A office buildings located in London’s West End.

The sellers are CPPIB US Re-3 Inc and CPP Investment Board Real Estate Holdings, affiliates of the Canada Pension Plan Investment Board (CPPIB). The sales price was £430.6 million ($560 million).

The Nova Building consists of retail units on the ground floor and 170 residential units. While Nova Residential LP, acting through Nova Residential (GP) Ltd., holds the ground lease in relation to the residential units, the 170 residential units are excluded from the transaction. Suntec REIT is acquiring this ground lease with Landsec to provide the LPs and GPs with greater control over the Nova estate and facilitate their management of maintenance and future asset enhancements over the Nova estate.

The property is located in London SW1, bounded by Victoria S