Singaporean investor City Developments Limited (CDL) has completed the purchase of the landmark St Katharine Docks located in Central London, UK, from funds advised by Blackstone for £395 mln (€444 mln).
Opened in 1828, the 23-acre freehold mixed-use estate fronting the River Thames comprises over 500,000 ft2 of Grade A office, F&B, retail and residential arranged across four main buildings and supporting ancillary spaces, including a marina with berths for up to 185 yachts.
Located in the heart of London near the financial district, fronting the River Thames, St Katharine Docks attracts over 5.9 million visitors annually.
Since 2011, the estate underwent a £69.5 mln repositioning and refurbishment programme, which included enhancements to the buildings, the marina and the overall estate.
The office component, housed in four main buildings, currently enjoys an occupancy rate of 90% with a well-diversified tenant base across sectors such as consulting, shipping, education and co-working spaces, which accounts for around 92% of the estate’s income. Long-term income has been secured, with an overall Weighted Average Unexpired Lease Term (WAULT) of 8.2 years (to lease breaks) and 9.4 years (to lease expiries).
Sherman Kwek, CDL Group Chief Executive Officer, said, ‘The current uncertainty in the UK has provided us with strategic opportunities to acquire prime assets and expand our portfolio. This latest acquisition of the sizeable St Katharine Docks freehold estate complements our fund management strategy, providing us with the option to inject our UK assets into listed or unlisted platforms at an opportune time. In addition, there are ample asset management opportunities for us to demonstrate our ability to enhance value and improve operational efficiency.’
The acquisition adds to the group’s portfolio of prime commercial assets in the UK, bringing its total valuation to around £1 bn.
The acquisition of St Katharine Docks is funded through CDL’s internal cash resources and credit facilities.
CDL’s other commercial properties in the UK include two prime freehold Grade A buildings in Central London, acquired in 2018 – Aldgate House and 125 Old Broad Street.
