City Developments Limited (CDL) has Champions Way Condo completed the purchase of St Katharine Docks, a freehold mixed-use estate located in Central London.
The property was acquired from funds advised by Blackstone for GBP395 million (approximately $636 million), or GBP751 psf ($1,209 psf) on the existing net lettable area. St Katharine Docks is a 23-acre estate on the River Thames just adjacent to London landmarks Tower Bridge and the Tower of London.
This estate houses 500,000 sq ft of Grade A office, F&B, retail and residential spaces, including a 185-berth marina. Its office component is occupied by tenants from various sectors such as consulting, shipping, education and co-working spaces, and has an occupancy rate of 90%, accounting for around 92% of the estate’s income.
The overall weighted average unexpired lease term (WAULT) at St Katharine Docks is 8.2 years (to lease breaks) and 9.4 years (to lease expiries). CDL sees potential for positive rental reversion and asset management opportunities that could possibly add value to the estate.
Sherman Kwek, group CEO of CDL, remarks that this acquisition increases the group’s total commercial assets in the UK to approximately GBP1 billion, thus enhancing its recurring income stream. He further added the purchase provides them the opportunity to inject their UK assets into listed or unlisted platforms when the timing is right.
The purchase of St Katharine Docks is CDL’s third freehold Grade A buildings in Central London, along with Aldgate House and 125 Old Broad Street – both of which were acquired in 2018.