The magnificent St Katharine’s Docks commercial property in London has been sold by AREA Property Partners LLP and F&C REIT Asset Management Plc, to a joint venture involving AIM-listed Max Property Group Plc, for a cash consideration of £156.3 million plus costs.
The riverside central London landmark estate, comprises a 10 acre 160 berth marina, 500,000 sq ft of commercial property, including offices, restaurants and shops, with the capability of producing an annual rent roll of £12.6 million.
The property was sold following a default on a £170 million loan by the owners, AREA Property Partners LLP and F&C REIT Asset Management Plc. The loan was placed in special servicing in May 2010 after the value of the commercial property fell to £116 million.
The former owners failed in a bid last year to get planning permission to demolish and redevelop Commodity Quay, one of the estates main buildings after pressure from residents, which included, actor, David Suchet. This 130,000 sq ft building is presently 80% occupied.
Max Property Group is to hold 60% of the equity, while it’s silent partner, Newmarket Property Holdings, a newly formed Jersey special purpose vehicle (SPV) of an offshore family trust, will contribute 40%. Debt finance has been lined up with Eurohypo AG for up to 55% of the purchase price. The deal is set to complete on 8th August 2011.
Max Property has recently invested in a London pubs portfolio for £42.6 million and a nightclub portfolio for £9.4 million.
Nick Leslau, Chairman of Prestbury Investments, Max Property Group’s property manager said: ‘St Katharine Docks is one of London’s jewels, providing a stunning waterside environment, enhanced by the magnificent backdrop of Tower Bridge and the Tower of London. It is difficult to imagine a more beautiful place to work and live in Central London and it will be our privilege to enhance the experience of such an important landmark, whilst simultaneously delivering attractive returns for our shareholders.’
