City Developments Limited (CDL) C09 has completed the acquisition of the landmark St Katharine Docks, the only marina within Central London, for GBP395 million ($636 million). The price translates to GBP751 (or $1,209) per sq ft on the existing net lettable area (NLA).
The 23-acre freehold mixed-use estate fronts the iconic River Thames and is adjacent to Tower Bridge and the Tower of London. It comprises over 500,000 sq ft of Grade A offices, as well as food and beverage (F&B), retail and residential real estate spread across four main buildings and supporting ancillary spaces. The estate also includes a marina with berths for up to 185 yachts.
Opened in 1828, St Katharine Docks is located in the heart of London near its financial district. The estate, which underwent a GBP 69.5 million repositioning and refurbishment programme in 2011, attracts over 5.9 million visitors annually.
According to CDL, St Katharine Docks’ office component currently has a strong occupancy rate of 90% with a well-diversified tenant base across several sectors such as consulting, shipping, education and co-working spaces. It has an overall weighted average unexpired lease term (WAULT) of 8.2 years (to lease breaks) and 9.4 years (to lease expiries). The group has also identified strong potential for positive rental reversion and asset management opportunities to add value to the estate.
“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, one of London’s trophy landmarks, increases CDL’s total commercial assets in the UK to around GBP1 billion and enhances our recurring income stream,” says CDL’s group CEO Sherman Kwek.
“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. In addition, there are ample asset management opportunities for us to demonstrate our ability to enhance value and improve operational efficiency,” he adds.
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The group’s other commercial properties in the UK include two prime freehold Grade A buildings in Central London, Aldgate House and 125 Old Broad Street. Both were acquired in 2018.
The acquisition of St Katharine Docks is funded through CDL’s internal cash resources and credit facilities.
As at 12.48pm, shares in CDL are trading 2 cents lower or 0.27% down at $7.38.
