Property heavyweight City Developments (CDL) has acquired a landmark Stag Brewery site in Mortlake, South West London, for £158 million (S$335 million).

CDL said in a statement yesterday that the freehold site - sold by global brewer AB InBev - has "tremendous potential" to be redeveloped into a new mixed-use project, complete with a riverside residential belt.

The acquisition by CDL's unit, Reselton Properties, is expected to be finalised by the first week of next month.

CDL executive chairman Kwek Leng Beng said the deal is in line with the company's plans to step up its overseas diversification.

"Greater London is a key focus for our UK real estate platform, which we established in 2013. Greater London is seen as an attractive alternative to Central London as buyers have increasingly sought more value for their money," Mr Kwek added.

Spanning 89,031 sq m, the site is in the London Borough of Richmond upon Thames. CDL said the site sits "right beside" the River Thames and about 200m from the rapid overland train link to Central London's mainline station, Waterloo. Central London is a 25-minute train ride from Mortlake, it added.

The site's planning brief promotes a mixed-use scheme, which will accommodate a major residential development, a new school, a hotel and other employment and leisure uses.

CDL said it presents an opportunity to create a new riverside residential belt for Richmond, with "a new green parkland spine" leading from the existing commercial centre of Mortlake to the Thames.

The Stag Brewery site is CDL's eighth acquisition in Britain, following the completion of its £85 million purchase of the 18,211 sq m Teddington Studios site, also in the borough of Richmond.

In all, CDL has invested £411 million in eight prime freehold properties in Britain.

"We will continue to build traction and capitalise on property development and investment opportunities in the UK," Mr Kwek said.