CDL splashes £395m on St Katharine Docks

CDL has bought St Katharine Docks, E1, from Blackstone for £395m. The deal amounts to £751 per sq ft on the existing net lettable area. The 23-acre freehold mixed-use estate and marina, which sits on the bank of the River Thames, includes more than 500,000 sq ft of grade-A office, food and beverage, retail and residential space. This spans four core buildings and includes a marina with space for up to 185 yachts. It is close to multiple transport networks and attracts more than 5.9m visitors each year. The acquisition of the site, close to the Tower of London and Tower Bridge, was funded through Singapore-based City Developments Limited’s internal cash resources and credit facilities. The development, designed by Thomas Telford and his only development in London, originally opened in 1828. Since 2011 it has undergone an extensive £69.5m refurbishment and repositioning. Blackstone took control of the trophy asset in 2014 when it bought Nick Leslau’s Max Property Group. In 2020 it was reported to be marketing it for £500m. The office element spans four buildings and has an occupancy rate of 90%, with tenants from sectors including consulting, shipping, education and co-working spaces. This component accounts for around 92% of the estate’s income. The offices have an overall WAULT of 8.2 years (to lease breaks) and 9.4 years (to lease expiries). Sherman Kwek, chief executive at CDL Group, said: “The current uncertainty in the UK has provided us with strategic opportunities to acquire prime assets and expand our portfolio.” “[The acquisition of St Katharine Docks] increases CDL’s total commercial assets in the UK to around £1bn and enhances our recurring income stream,” he said. “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.” CDL’s UK commercial portfolio also includes two prime freehold grade-A office buildings in the capital: Aldgate House and 125 Old Broad Street. The sites, which were both acquired in 2018, achieve rent collections and occupancies of 98.1% and 92.4% respectively. To send feedback, e-mail chante.bohitige@eg.co.uk or tweet @bohitige Photo from CDL