{"id":345317,"date":"2023-03-09T20:58:13","date_gmt":"2023-03-09T12:58:13","guid":{"rendered":"https:\/\/www.mingtiandi.com\/?p=345317"},"modified":"2023-03-09T20:58:13","modified_gmt":"2023-03-09T12:58:13","slug":"cdl-closes-on-468m-buy-of-blackstone-london-asset","status":"publish","type":"post","link":"https:\/\/www.mingtiandi.com\/real-estate\/outbound-investment\/cdl-closes-on-468m-buy-of-blackstone-london-asset\/","title":{"rendered":"CDL Completes $468M Buy of London Mixed-Use Complex From Blackstone"},"content":{"rendered":"<div id=\"attachment_342582\" style=\"width: 790px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-342582\" class=\"wp-image-342582 size-full\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/01\/GettyImages-1235033170-e1675089752947.jpg\" alt=\"\" width=\"780\" height=\"484\" srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/01\/GettyImages-1235033170-e1675089752947.jpg 780w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/01\/GettyImages-1235033170-e1675089752947-400x248.jpg 400w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/01\/GettyImages-1235033170-e1675089752947-640x397.jpg 640w\" sizes=\"(max-width: 780px) 100vw, 780px\" \/><p id=\"caption-attachment-342582\" class=\"wp-caption-text\">CDL says the St Katharine Docks could figure in the group&#8217;s future fund management strategy (Getty Images)<\/p><\/div>\n<p>Singapore\u2019s City Developments Ltd has completed its purchase of the St Katharine Docks complex in central London from funds advised by Blackstone for \u00a3395 million ($468.2 million).<\/p>\n<p>The property spans more than 500,000 square feet (46,450 square metres) of office, F&amp;B, retail and residential space across a 23 acre (9.3 hectare) campus beside the historic Tower of London. The acquisition was funded through CDL\u2019s internal cash resources and credit facilities, the SGX-listed property giant said Thursday <a href=\"https:\/\/cdl.com.sg\/newsroom\/cdl-completes-the-acquisition-of-iconic-marina-estate-st-katharine-docks-in-central-london-for-ps395-million\">in a release<\/a>.<\/p>\n<p style=\"text-align: center;\"><a data-no-instant=\"1\" href=\"https:\/\/ad.doubleclick.net\/ddm\/trackclk\/N6563.3378992MINGTIANDI\/B30546704.375324595;dc_trk_aid=566156183;dc_trk_cid=192150727;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;ltd=;dc_tdv=1\" rel=\"noopener\" class=\"adv-link\" target=\"_blank\" aria-label=\"Copy of APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real Estate\"><img decoding=\"async\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/Copy-of-APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real-Estate.jpg\" alt=\"\"  srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/Copy-of-APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real-Estate.jpg 780w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/Copy-of-APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real-Estate-400x128.jpg 400w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/Copy-of-APAC_EN_Capabilities_Static_StandoutAPAC_780x250_Real-Estate-640x205.jpg 640w\" sizes=\"(max-width: 780px) 100vw, 780px\" width=\"780\" height=\"250\"   \/><\/a><script language='JavaScript1.1' src=\"https:\/\/ad.doubleclick.net\/ddm\/trackimpj\/N6563.3378992MINGTIANDI\/B30546704.375324595;dc_trk_aid=566156183;dc_trk_cid=192150727;ord=+ Date.now();dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;gdpr=${GDPR};gdpr_consent=${GDPR_CONSENT_755};ltd=;dc_tdv=1?\" attributionsrc ><\/script><\/p>\n<p>The closing price is 21 percent less than the \u00a3500 million that Blackstone was said to have asked for the estate in a marketing exercise<a href=\"https:\/\/reactnews.com\/article\/blackstone-tests-the-water-on-500m-st-katharine-docks-sale\/\"> reported by real estate information provider React News<\/a> in early 2020. In 2017, Sky News reported that the US investment firm<a href=\"https:\/\/news.sky.com\/story\/435m-st-katharine-docks-auction-in-doubt-as-bidders-set-sail-11040607\"> had put the St Katharine Docks on the market for \u00a3435 million<\/a>.<\/p>\n<p>\u201cThe current uncertainty in the UK has provided us with strategic opportunities to acquire prime assets and expand our portfolio,\u201d said CDL group CEO Sherman Kwek. \u201cThis latest acquisition of the sizeable St Katharine Docks freehold estate, one of London\u2019s trophy landmarks, increases CDL\u2019s total commercial assets in the UK to around \u00a31 billion and enhances our recurring income stream.\u201d<\/p>\n<h3>Potential Fund Component<\/h3>\n<p>Mingtiandi had <a href=\"https:\/\/www.mingtiandi.com\/real-estate\/outbound-investment\/singapores-cdl-in-talks-to-buy-london-complex-from-blackstone-for-496m\/\">reported in January<\/a> that CDL was in exclusive negotiations to purchase the St Katharine Docks from Blackstone at a reported price of nearly \u00a3400 million as the private equity titan faced a fresh set of redemption requests from its property funds.<\/p>\n<div id=\"attachment_341355\" style=\"width: 610px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-341355\" class=\"wp-image-341355 size-full\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/01\/Sherman-Kwek-of-CDL.jpeg\" alt=\"Sherman Kwek of CDL\" width=\"600\" height=\"340\" srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/01\/Sherman-Kwek-of-CDL.jpeg 600w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/01\/Sherman-Kwek-of-CDL-400x227.jpeg 400w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/01\/Sherman-Kwek-of-CDL-348x196.jpeg 348w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><p id=\"caption-attachment-341355\" class=\"wp-caption-text\">City Developments Ltd group CEO Sherman Kwek<\/p><\/div>\n<p>Blackstone acquired the campus in 2014 as part of its \u00a3448 million takeover of Max Property Group, a real estate firm headed by English investor Nick Leslau. Max had paid \u00a3156 million for the site in 2011.<\/p>\n<p>CDL\u2019s final \u00a3395 million price translates to \u00a3751 ($890) per square foot of net lettable area at the complex, which has undergone a \u00a369.5 million repositioning and refurbishment programme.<\/p>\n<p>The office portion, housed in four main buildings, enjoys an occupancy rate of 90 percent and a well-diversified tenant base across the consulting, shipping, education and co-working sectors, CDL said, noting that office leasing accounts for 92 percent of the estate\u2019s income. The overall weighted average unexpired lease term is 8.2 years to lease breaks and 9.4 years to lease expiries.<\/p>\n<p style=\"text-align: center;\"><a data-no-instant=\"1\" href=\"https:\/\/www.mingtiandi.com\/real-estate\/events\/oxford-ivanhoe-kic-savills-on-singapore-india-markets\/\" rel=\"noopener\" class=\"adv-link\" target=\"_blank\" aria-label=\"14 NOVEMBER 2023 conrad centennial Singapore\"><img decoding=\"async\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/14-NOVEMBER-2023-conrad-centennial-Singapore.jpg\" alt=\"\"  srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/14-NOVEMBER-2023-conrad-centennial-Singapore.jpg 780w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/14-NOVEMBER-2023-conrad-centennial-Singapore-400x128.jpg 400w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/11\/14-NOVEMBER-2023-conrad-centennial-Singapore-640x205.jpg 640w\" sizes=\"(max-width: 780px) 100vw, 780px\" width=\"780\" height=\"250\"   \/><\/a><\/p>\n<p>Kwek said the St Katharine Docks buy would complement CDL\u2019s fund management strategy and provide an option to inject UK assets into listed or unlisted platforms at an opportune time.<\/p>\n<p>\u201cIn addition, there are ample asset management opportunities for us to demonstrate our ability to enhance value and improve operational efficiency,\u201d the CEO said.<\/p>\n<h3>City Collection Grows<\/h3>\n<p>Set on the banks of the Thames River east of Tower Bridge, the docks first opened in the 1820s and now offer about 185 slips for yachts and megayachts, in a marina managed by Florida-based operator IGY Marinas.<\/p>\n<p>Among the complex\u2019s major office tenants are WeWork and QA Ltd, a local tech training services provider. The estate attracts more than 5.9 million visitors annually.<\/p>\n<p style=\"text-align: center;\"><a data-no-instant=\"1\" href=\"https:\/\/www.mipim-asia.com\/?utm_source=mingtiandi&#038;utm_medium=barter_website&#038;utm_campaign=mipimasia2023\" rel=\"noopener\" class=\"adv-link\" target=\"_blank\" aria-label=\"AR-607487_Mipim Asia_23_Banner Resize 780&#215;250\"><img decoding=\"async\" src=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/AR-607487_Mipim-Asia_23_Banner-Resize-780x250-1.jpg\" alt=\"\"  srcset=\"https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/AR-607487_Mipim-Asia_23_Banner-Resize-780x250-1.jpg 780w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/AR-607487_Mipim-Asia_23_Banner-Resize-780x250-1-400x128.jpg 400w, https:\/\/www.mingtiandi.com\/wp-content\/uploads\/2023\/10\/AR-607487_Mipim-Asia_23_Banner-Resize-780x250-1-640x205.jpg 640w\" sizes=\"(max-width: 780px) 100vw, 780px\" width=\"780\" height=\"250\"   \/><\/a><\/p>\n<p>The latest trophy adds to the collection of central London commercial properties held by the developer chaired by tycoon Kwek Leng Beng, including <a href=\"https:\/\/www.mingtiandi.com\/real-estate\/outbound-investment\/cdl-acquires-londons-aldgate-house-from-cppib-hermes\/\">Aldgate House<\/a> and <a href=\"https:\/\/www.mingtiandi.com\/real-estate\/outbound-investment\/cdl-buys-125-old-broad-street-in-london-from-blackstone\/\">125 Old Broad Street<\/a>.<\/p>\n<p>The two Grade A freehold properties, both acquired in 2018, enjoy stable rent collections and strong committed occupancies of 98.1 and 92.4 percent respectively, CDL said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Singapore\u2019s City Developments Ltd has completed its purchase of the St Katharine Docks complex in central London from funds advised by Blackstone for \u00a3395 million ($468.2 million).<\/p>\n<p>The property spans more than 500,000 square feet (46,450 square metres) of office,&#8230;&nbsp;<a href=\"https:\/\/www.mingtiandi.com\/real-estate\/outbound-investment\/cdl-closes-on-468m-buy-of-blackstone-london-asset\/\">Read&nbsp;More>><\/a><\/p>\n","protected":false},"author":9671,"featured_media":342582,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[842],"tags":[1473,2674,5382,5359,2109,2755],"ppma_author":[8847],"authors":[{"term_id":8847,"user_id":9671,"is_guest":0,"slug":"christopher-caillavet","display_name":"Christopher Caillavet","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/500c291c35a85a2ad5827cf7c6d198e1?s=96&d=mm&r=g","user_url":"","last_name":"Caillavet","first_name":"Christopher","description":""}],"_links":{"self":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts\/345317"}],"collection":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/users\/9671"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/comments?post=345317"}],"version-history":[{"count":0,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts\/345317\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/media\/342582"}],"wp:attachment":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/media?parent=345317"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/categories?post=345317"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/tags?post=345317"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/ppma_author?post=345317"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}