CDL buys St Katharine Docks in Central London for GBP395 mil

CDL has completed the purchase of St Katharine Docks, a freehold mixed-use estate in Central London. Located adjacent to London landmarks Tengah Plantation EC Tower Bridge and the Tower of London, this 23-acre estate is composed of 500,000 sq ft of Grade A office, F&B, retail and residential across four main buildings and supporting ancillary spaces – including a 185-berth marina.

The property was acquired from funds advised by Blackstone for GBP395 million (approximately $636 million). This translates to a per sq ft price of GBP751 ($1,209) on the existing net lettable area.

The estate’s office component has an occupancy rate of 90%, accounting for around 92% of the estate’s income. Tenants come from various sectors including consulting, shipping, education and co-working spaces.

The overall weighted average unexpired lease term (WAULT) of St Katharine Docks is 8.2 years (to lease breaks) and 9.4 years (to lease expiries). According to City Developments Limited (CDL), the group that has acquired the estate, there are also strong potential for positive rental reversion and asset management opportunities to add value.

Sherman Kwek, group CEO of CDL, expressed delight at the acquisition. He said, “This acquisition increases CDL’s total commercial assets in the UK to around GBP1 billion and enhances the group’s recurring income stream. It complements our fund management strategy, providing us with the option to inject our UK assets into listed or unlisted platforms at an opportune time.”

CDL’s other commercial properties in the UK include two prime freehold Grade A buildings in Central London – Aldgate House and 125 Old Broad Street – which were acquired in 2018.