SINGAPORE (EDGEPROP) - City Developments Limited (CDL) has completed the purchase of St Katharine Docks, a freehold mixed-use estate in Central London. In a Mar 9 press release, the group says 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 fronting the River Thames. Opened in 1828, it has 500,000 sq ft of Grade A office, F&B, retail and residential across four main buildings and supporting ancillary spaces, including a 185-berth marina. St Katharine Docks is located adjacent to London landmarks Tower Bridge and the Tower of London.

The estate's office component has an occupancy rate of 90%, accounting for around 92% of the estate’s income. Tenants come from sectors including consulting, shipping, education and co-working spaces.

The estate has an overall weighted average unexpired lease term (WAULT) of 8.2 years (to lease breaks) and 9.4 years (to lease expiries). CDL says it has also identified strong potential for positive rental reversion and asset management opportunities to add value.

Sherman Kwek, group CEO of CDL, says the acquisition increases CDL’s total commercial assets in the UK to around GBP1 billion and enhances the group's 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,” he adds.

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 – that were acquired in 2018.