Nick Leslau and Mike Brown’s Max Property has bought St Katherine Docks for £156m in a joint venture with a private investor.
The AIM-listed company today announced that it had exchanged contracts to buy the mixed-use estate on the Eastern edge of the City from a joint venture between F&C REIT Asset Management and Area Property Partners.
It is providing 60% of the equity for the deal, with the remaining 40% of the equity provided by Newmarket Property Holdings, a private family trust. Max is in talks with Eurohypo about a laon for the purchase at a 55% loan to value ratio.
The estate is let to a wide range of tenants, currently generating an annual rent roll of £12.6 million, and with a vacancy rate of 12% which gives the potential to improve facilities and tenant mix through a rolling refurbishment programme.
One of the Estate’s main buildings, Commodity Quay, comprises 130,000 sq ft of offices with 80% occupancy, Max said. It is likely to fall vacant next year, providing an opportunity for a comprehensive refurbishment scheme, to be launched into the lettings market in 2013, ahead of the development pipeline elsewhere in the City. The balance of the portfolio comprises five buildings with 60 tenants and 76% of the total rent roll.
“St Katharine Docks is one of London's jewels, providing a stunning waterside environment,” Leslau said,“enhanced by the magnificent backdrop of Tower Bridge and the Tower of London. It is difficult to imaginea more beautiful place to work and live in Central London and it will be our privilege to enhance theexperience of such an important landmark, whilst simultaneously delivering attractive returns for ourshareholders."
19 June 2012