Kajima, the pan-European real assets business, has completed the purchase of Warehouse K, a Grade II listed former tobacco warehouse at the heart of London’s Docklands for £45m, reflecting a yield of around 5.65%.The building offers approximately 108,479 sq ft of high-quality office, leisure and industrial space over a 1.84 acre site. This acquisition forms part of Kajima’s strategy for growing its London commercial property portfolio with high-quality workspaces within strategic locations.
Situated next to the ExCel Centre at the heart of a major regeneration site in-between Canary Wharf and London City Airport, Warehouse K is positioned directly adjacent to the Customs House station, which will give access to Liverpool Street in 10 minutes when the Elizabeth Line opens in the second quarter of this year. The building is a short walk from the new City Hall for the Greater London Assembly at The Crystal.
Warehouse K is multi-let, with half of the income derived from the Secretary of State for Housing Communities and Local Government on a lease until 2034.
Kajima continues to look for opportunities to increase its London office footprint with high-quality, prime location spaces. Its London portfolio includes 77 Coleman Street in Moorgate, which was acquired and comprehensively redeveloped in 2021, Orwell House in Fitzrovia, which was acquired from British Land in 2020 and Grove House in Marylebone.
Tim James, Investment Director at Kajima, said: “Warehouse K is an important addition to our London office portfolio. Situated in a strategic location with significant regeneration and infrastructure improvements occurring within close proximity, this asset offers strong long term growth prospects whilst also providing secure income off sustainable base rents. As we exit the pandemic, the London office market continues to remain resilient and Kajima is committed to driving investment and growth in this market where we identify value.”
Fineman Ross advised Kajima on the deal.
