A joint venture between Max Property Group and Newmarket Property Holdings, a subsidiary of an overseas family trust, has exchanged unconditional contracts to purchase the freehold St Katharine Docks for £156.3 million.

Situated on the Thames, immediately adjacent to Tower Bridge and the Tower of London, the Estate comprises 500,000 sq ft of offices, restaurants and shops, together with Central London only marina which extends to a total of 10 acres and comprises 160 berths.

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.

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One of the Estate’s main buildings, Commodity Quay, comprises 130,000 sq ft of offices with 80% occupancy. It is likely to fall vacant next year, providing an opportunity for a comprehensive refurbishment scheme. To be launched in 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.

Max is investing 60% of the equity in the joint venture, with the private family trust fund investing 40%.

Nick Leslau, Chairman of Prestbury Investments, Max's Property Manager, commented: "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."

(CD/KMcA)