CDL wants to turn Ransomes Wharf site into a prime residential project

It acquired the London property for $103m.

City Developments Limited has entered into an acquisition mode as it snaps up Ransomes Wharf site in Battersea, London from Curtaus Trust for GBP58.0m ($103.2m).

According to RHB, CDL plans to develop the site into a luxury residential project with an estimated gross development value of GBP222.0m ($395.2m). The site has an existing planning permission for 118 apartments including 24 affordable homes, eight commercial units and 103 car parking spaces.

"The acquisition doesn't come as a surprise as CDL's lowly geared balance sheet (net gearing of 0.19x) provides it with ample debt headroom (more than $3bn assuming comfortable gearing of 0.5x) to undertake acquisitions," the firm said.

It furthered, "The move is positive as it allows CDL to build on its existing portfolio of ten prime properties and also capitalise on a weak GBP. As its UK properties mainly caters to local market, we expect demand to remain fairly robust despite the ongoing Brexit developments."