CDL buys St Katharine Docks in Central London for GBP395 mil

City Developments Limited (CDL) recently announced the completion of the purchase of St Katharine Docks, a freehold mixed-use estate in Central London. The property was acquired from funds advised by Blackstone for GBP395 million (approximately $636 million). On the existing net lettable area, it is the equivalent of GBP751 psf ($1,209 psf).

This 23-acre estate, located adjacent to Tower Bridge and the Tower of London, was opened in 1828 and contains over 500,000 sq ft of Grade A offices, as well as F&B, retail and residential spaces. Supporting ancillary spaces include a 185-berth marina.

This prime real estate has witnessed a 90% occupancy rate of its office component, which has been primarily contributed by tenants from the consulting, shipping, education and co-working spectrum. The overall weighted average unexpired lease term (WAULT) of the estate (to lease breaks and expiries) is 8.2 years and 9.4 years, respectively.

Sherman Kwek, group CEO of CDL, commented that the acquisition of St Katherine Docks provides them with a GBP1 billion portfolio of commercial assets in the UK, and enhances the company’s recurring income stream. This follows the acquisition of two other prime buildings in Central London – Aldgate House and 125 Old Broad Street Senja Close EC – that were purchased in 2018.

Kwek continued with an outlook of positive rental reversion, and asset management opportunities to add value, with the added option to inject their UK assets into listed or unlisted platforms at an opportune time.