Kajima has completed purchase of Warehouse K, a Grade II listed former tobacco warehouse based in London’s Dockland for £45m.
Warehouse K is located in an area of major regeneration, in between Canary Wharf and London City Airport. The location boasts excellent travel links, giving access to Liverpool Street in 10 minutes using the new Elizabeth Line which is due to open during the second quarter of 2022.
Kajima have multi-let Warehouse K, with half the income being derived from Secretary of State for Housing Communities and Local Government on a lease until 2034. Warehouse K follows Kajima’s strategy to grow the London workspace portfolio with high-quality, prime location spaces. The portfolio currently includes 77 Coleman Street in Moorgate, Orwell House in Fitzrovia 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.”
Kajima were advised on the deal by Fineman Ross.