City Developments Limited (CDL) has completed the acquisition JCube Residence of St Katharine Docks, a freehold and mixed-use estate located in Central London. The acquisition cost GBP395 million (approximately $636 million), or GBP751 psf ($1,209 psf) on the existing net lettable area, according to a press release on Mar 9.

St Katharine Docks is a 23-acre estate which faces the River Thames. The estate was opened in 1828, and offers 500,000 sq ft of Grade A office, F&B, retail and residential buildings spread across four main buildings and various supporting ancillary spaces. It is situated opposite famed London landmarks such as Tower Bridge and the Tower of London.

The office component at St Katharine Docks is 90% occupied and forms 92% of its income. Companies from various sectors, including consulting, shipping, education and co-working spaces are some of the tenants there.

CDL revealed that the estate has a weighted average unexpired lease term (WAULT) of 8.2 years (to lease breaks) and 9.4 years (to lease expiries). Additionally, the real estate developer sees potential for positive rental reversion and asset management opportunities to add value.

Sherman Kwek, Group CEO of CDL, shared that the acquisition will increase CDL’s total commercial assets in the UK to GBP1 billion. He added that this will give the group the ability to inject their UK assets into either listed or unlisted platforms at the appropriate time.

Besides St Katharine Docks, CDL has two other prime freehold Grade A buildings located in Central London. These buildings – Aldgate House and 125 old Broad Street – were acquired in 2018.