A year ago, I initiated position in Suntec Reit (SGX: T82U) because I believe it was an undervalued Reit with immense growth potential and headroom for DPU to increase. I suffered capital losses since as I entered at $1.88 near the highs.
Its share price even plunged to the lows of $1.12 during the stock market crash in Mar 2020 but I was unfazed. I did not cut losses nor add on to the investment by averaging down because this was intended to be a small long-term position and I had other better buying targets then in Mar 2020.
On 8 Oct 2020, Suntec Reit announced the proposed acquisition of 50% stake of London Nova Development from Canada's pension fund for £430.6m. The development consists of two Grade A office buildings in the heart of Victoria, West End, London with a leasehold tenure of 1,042 years. The net property income yield is 4.6% and this acquisition is 4.9% DPU accretive....
