Kajima, the pan-European real assets business, has completed the purchase of Warehouse K, a Grade II listed former tobacco warehouse in London’s Docklands for £45 mln (€54 mln), reflecting a yield of around 5.65%.
The building offers some 108,479 ft2 (10,000 m2) of office, leisure and industrial space over a 1.84 acre (7,450 m2) site. This acquisition forms part of Kajima’s strategy for growing its London commercial property portfolio with high-quality workspaces within strategic locations.
Situated next to the ExCel Centre in a regeneration site in-between Canary Wharf and London City Airport, Warehouse K is positioned directly adjacent to the Customs House station on the new Elizabeth Line.
Tim James, investment director at Kajima, said: 'Warehouse K is an important addition to our London office portfolio. Situated in a strategic location with significant regeneration and infrastructure improvements occurring within close proximity, this asset offers strong long term growth prospects whilst also providing secure income off sustainable base rents.
'As we exit the pandemic, the London office market continues to remain resilient and Kajima is committed to driving investment and growth in this market where we identify value.'
Warehouse K is multi-let, with half of the income derived from the Secretary of State for Housing Communities and Local Government on a lease until 2034.
Kajima's London portfolio currently includes 77 Coleman Street in Moorgate, which was acquired and comprehensively redeveloped in 2021, Orwell House in Fitzrovia, which was acquired from British Land in 2020 and Grove House in Marylebone.
Fineman Ross advised Kajima on the deal.
