Singapore’s CDL acquires London’s St Katharine Docks
City Developments Limited completes £395 million acquisition of the iconic marina estate adjacent to Tower Bridge and the Tower of London.
Over 90 per cent of St Katharine Docks’ income is from office rentals
City Developments Limited (CDL) has completed the purchase of St Katharine Docks in Central London from funds advised by Blackstone for £395 million (equivalent to about US$480 million as of March 14, 2023) or £751psf (US$914psf) on the existing net lettable area.
The 23-acre mixed-use estate fronting the River Thames comprises over 500,000sqft of Grade A office, F&B, retail and residential space arranged across four main buildings and supporting ancillary spaces, including Central London’s only marina, with berths for up to 185 yachts. It hosts the annual London Luxury Afloat boat show, which will next be held from April 18-22.
Located near London’s financial district, St Katharine Docks attracts over 5.9 million visitors annually, enjoys good connectivity to transport networks, and offers views overlooking the Tower of London, a UNESCO World Heritage site, and the iconic Tower Bridge.
Since 2011, the freehold riverside estate underwent a £69.5 million repositioning and refurbishment programme, which included enhancements to the buildings, marina and overall estate.
St Katharine Docks is one of CDL’s three commercial properties in London
The office component, housed in four main buildings, accounts for around 92 per cent of the estate’s income and currently enjoys an occupancy rate of 90 per cent, with a tenant base across sectors such as consulting, shipping, education and co-working spaces.
Sherman Kwek, Group CEO of CDL, said: “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 £1 billion and enhances our 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. In addition, there are ample asset-management opportunities for us to demonstrate our ability to enhance value and improve operational efficiency.”
The acquisition of St Katharine Docks is funded through CDL’s internal cash resources and credit facilities. 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 – acquired in 2018. Both enjoy stable rent collections and strong committed occupancies of 98.1 per cent and 92.4 per cent respectively.