CDL, Blackstone in Talks for St Katharine Docks

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The CDL has long had its eye on St Katharine Docks, according to market sources. (Source: Getty)

Singapore’s City Developments Ltd is in exclusive talks to buy London’s St. Katharine Docks complex from Blackstone for a reported price of nearly £400 million ($495.7 million). its property funds.

CDL said at SGX Filing On Monday, it agreed to enter into exclusive negotiations to purchase the 23-acre (9.3-hectare) campus next to the historic Tower of London and agreed to conduct due diligence on the transaction.

“The company is always looking for opportunities to increase shareholder value and the acquisition of SKD (St Katharine Docks) is one such opportunity,” CDL said in a statement following UK press coverage of the deal. said in a statement.Blackstone has confirmed it is said to be disposing of assets for just under £400m, according to market sources not involved in the deal. CoStar account.

As first reported by the Financial Times, news of a possible sale of London assets surfaced after Blackstone said late last week: Faces redemption demands worth $5 billion Dropped from the Blackstone Property Partners strategy after being forced to limit its exit from the BREIT private REIT late last year.

the third charm

The St Catherine Docks complex spans over 500,000 sq ft (46,450 sq m) of waterfront workspace and 400 homes, dining, shopping and recreational facilities in central London’s eastern urban neighborhood.

CDL chairman Kwek Leng Beng is tight-lipped about his latest acquisition

CDL said negotiations were still underway and warned investors that there was no certainty that the deal would go ahead. Company representatives also declined to confirm the reported purchase price.

Blackstone acquired the campus in 2014 as part of its £448m acquisition of Max Property Group, a property company led by British investor Nick Reslau, who paid £156m for the site in 2011 Did.

If the deal closes at the purchase price, it would be around 20% less than the £500m Blackstone allegedly claimed for the property in a marketing exercise. Real estate information provider React News reported Early 2020. Sky News reported in 2017 that the company St Catherine Docks put up for sale for £435m.

Situated on the banks of the River Thames east of Tower Bridge, the dock is a marina first opened in the 1820s and now managed by Florida-based operator IGY Marinas, with approximately 185 slips for yachts and megayachts. It offers. The complex’s principal office tenants include WeWork and QA Ltd, a local technical training services provider.

Blackstone did not respond to Mingtiandi’s question by the time of publication. Eastdil is understood to be one of his advisors involved in the transaction.

Withdrawal sheet

With over $951 billion in assets under management, Blackstone said in Thursday’s earnings call Facing a $5 billion redemption demand from Blackstone Property Partners or approximately 7% of the $73 billion net asset value under the strategy.

The announced exit from BPP comes pending after Blackstone’s $69 billion BREIT, which targets wealthy retail investors, said in early December that the company would implement a policy to limit redemptions. because it continues to face a backlog of withdrawals from The move comes after his BREIT withdrawal in October exceeded his 2% monthly limit on net asset value and crossed his 5% quarterly threshold.

Since that time, Blackstone has worked to attract new investors to private REITs. $4.5 billion capital injection From the investment department of the University of California.

CDL on the rise in the UK

The CDL, chaired by hotel and property magnate Kwek Leng Beng, is looking to further strengthen its UK portfolio after winning two student housing contracts in the UK last year.

In December last year, SGX-listed companies Get 5 student dormitories Purchased 1,863 bed facilities in Birmingham, Canterbury, Coventry, Leeds and Southampton for £215m.

The purchase comes six months after it entered the country’s student housing segment with a £59.2m purchase of a 505-bed property in Coventry, England from investment manager Erec Estates.

CDL last December Said it was delaying the REIT’s listing plans Later owning commercial property in the UK Scheme first announced in mid-2021In early 2022, CDL Hospitality Trust, a REIT managed by CDL, will indirectly Bought a hotel in Manchester, England for £24.1m.

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