CDL buys St Katharine Docks in Central London for GBP395 mil

City Developments Limited (CDL) has completed the purchase of St Katharine Docks – a freehold mixed-use estate in Central London. The purchase price for the 23-acre estate was GBP395 million (approximately $636 million). This translates to GBP751 psf ($1,209 psf) on the existing net lettable area, according to a Mar 9 press release.

St Katharine Docks is located adjacent to iconic London landmarks, such as Tower Bridge and the Tower of London. The estate comprises 500,000 sq ft of Grade A office, F&B, retail and residential buildings with supporting ancillary spaces and a 185-berth marina. The office component is already 90% occupied and accounts for 92% of the total income. Tenants come from consulting, shipping, education and co-working industries.

The estate also has a strong long-term outlook, with a weighted average unexpired lease term of 8.2 years (to lease breaks) and 9.4 years (to lease expiries). CDL says they have identified potential for positive rental reversion and asset management opportunities to add value.

Sherman Kwek, group CEO of CDL, emphasised the acquisition will add to their total commercial assets in the UK, which are currently valued at around GBP1 billion. He stated “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 acquired two prime freehold Grade A buildings in Central London in 2018 – Aldgate House and 125 Old Broad Street. With the addition of St Katharine Docks, CDL now holds three The Myst commercial properties in the UK.