Secret millionaire Nick Leslau buys St Katharine Docks

Published 29th Jun 2011

Property entrepreneur Nick Leslau outlines refurbishment plans for Thameside estate near London's Square Mile


One of Britain's wealthiest property entrepreneurs, Nick Leslau, has bought St Katharine Docks near Tower Bridge in London for £156m. He will refurbish the six buildings around the marina and hopes to lure financial services firms and other tenants from the City of London.

Leslau's Aim-listed Max Property Group teamed up with a South African family trust to buy the freehold estate for £3,670 per sq metre (£330 per sq ft). The property mogul, who co-owns Saracens rugby club and whose portfolio includes Alton Towers and Madame Tussauds, hopes to let out the offices at St Katharine Docks for £35 per sq ft "and possibly more".

He was pleased with the deal, having fought off competition from other property companies: "It's very rare to get 20 acres in central London for £330 per sq ft." Pointing to the Shard, which is going up across the river at London Bridge and is expected to house 12,500 office workers after it opens next year, Leslau said: "It's no longer vital to be in the Square Mile. You no longer have to be in a cluster of office buildings to get grade-A space.

"It is difficult to imagine a more beautiful place to work and live in central London. Being in a tower block is very different to being in a marina. "

The site has 46,450 sq m of offices, restaurants and shops surrounding the only marina in central London. It generates annual rent of £12.6m.

Leslau thinks he can reduce the 12% vacancy rate by improving the properties and the tenant mix and will start by refurbishing one of the estate's main buildings, Commodity Quay, when news agencies Thomson Reuters and Dow Jones move out next year. Just 80% of its 2,800 sq m of office space is occupied.

Leslau plans to bring the building back on the market in 2013 in the hope of attracting City tenants ahead of the completion of major office developments in the Square Mile. Land Securities's "Walkie Talkie" in Fenchurch Street and British Land's "Cheesegrater" in Leadenhall are due to be finished the following year.

Jersey-registered Max is investing 60% of the equity in the joint venture, with the private family trust investing 40%. Debt finance has been lined up with Eurohypo for up to 55% of the purchase price.

St Katharine Docks came on the market with a £170m price tag after owners Area Property Partners and F&C Reit Asset management defaulted on a £170m loan. Having bought the docks for £280m in 2004, they failed to get planning permision to demolish and redevelop Commodity Quay last year after strong protests from the marina's residents.

Source: ' Guardian '

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