St Martins, the property investment arm of the Kuwaiti government, is considering a bid for the More London development alongside Tower Bridge. The 53,000 sq m site includes City Hall, headquarters of Mayor Boris Johnson and the London Assembly.
The complex, which also includes offices, shops, restaurants and cafés, is currently owned by Bahaman registered London Bridge Holdings. According to media sources the company is seeking to refinance a £740 million debt which is held against the asset but may consider a sale to the Kuwaitis as an alternative to restructuring its finances.
St Martins’ commercial property portfolio already includes a number of London assets, including 5 Canada Square in Canary Wharf and the Willis Building in the City. But, at a reported £1.5 billion, More London would be their biggest acquisition to date. In fact it would be second only to Blackstone’s £1.7 billion purchase of a 50 per cent stake in the Broadgate estate.
City investment agents were surprised by the possibility of a sale but not by the origin of the interested party. One told the Evening Standard that the Kuwaitis were the obvious choice as they were the previous owners of the land. Another said the deal was way too big for anyone except sovereign wealth funds and possibly Chinese investors.
Whether or not the sale goes ahead, it is a further indication that the wave of overseas investment in London commercial property shows no sign of abating in the near future.
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