This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.theguardian.com/business/2014/nov/07/canary-wharf-owners-reject-qatar-bid
The article has changed 6 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Canary Wharf owners reject £2.2bn Qatar bid | Canary Wharf owners reject £2.2bn Qatar bid |
| (about 1 hour later) | |
| The company that controls Canary Wharf, Songbird Estates, has rejected a joint takeover bid worth £2.2bn from the Qatar Investment Authority and a US commercial property firm. | The company that controls Canary Wharf, Songbird Estates, has rejected a joint takeover bid worth £2.2bn from the Qatar Investment Authority and a US commercial property firm. |
| The Doha-based emirate’s investment arm teamed up with Brookfield Property Partners to offer 295p a share for Songbird. But the chairman of the UK company, David Pritchard, said on Friday: “This proposal significantly undervalues Songbird and does not reflect the inherent value of the business and its underlying assets. The group has an exceptional management team with a clear vision to deliver additional shareholder value, including from our 11m sq ft development pipeline, the largest in London.” | The Doha-based emirate’s investment arm teamed up with Brookfield Property Partners to offer 295p a share for Songbird. But the chairman of the UK company, David Pritchard, said on Friday: “This proposal significantly undervalues Songbird and does not reflect the inherent value of the business and its underlying assets. The group has an exceptional management team with a clear vision to deliver additional shareholder value, including from our 11m sq ft development pipeline, the largest in London.” |
| Shares in Songbird, which is partially listed on the stock market, leapt almost 23% to 320p, a six-year high, on Thursday, when the property developer was forced to confirm City speculation that the Qataris and Brookfield were preparing a joint approach. Songbird’s shares fell nearly 3% on Friday to 310.5p. QIA already owns almost 27% of Songbird, while Brookfield 22% stake in Canary Wharf Group. | |
| Qatar wants to add yet another London landmark to its string of trophy assets in the capital. | Qatar wants to add yet another London landmark to its string of trophy assets in the capital. |
| If its bid is successful, the tiny energy-rich state would be adding buildings that make up some the most famous parts of the London skyline to a range of investments that include Harrods and stakes in Sainsbury’s, Volkswagen and Porsche. | If its bid is successful, the tiny energy-rich state would be adding buildings that make up some the most famous parts of the London skyline to a range of investments that include Harrods and stakes in Sainsbury’s, Volkswagen and Porsche. |
| It reportedly bought HSBC’s 44-storey global headquarters in Canary Wharf for just over £1.1bn a fortnight ago. The deal made the tower– one of two built either side of the original 50-storey One Canada Square – London’s most expensive office building. | It reportedly bought HSBC’s 44-storey global headquarters in Canary Wharf for just over £1.1bn a fortnight ago. The deal made the tower– one of two built either side of the original 50-storey One Canada Square – London’s most expensive office building. |
| The attempt to take full control of Canary Wharf comes at a time of rising rents for office buildings in London and as the Docklands site prepares to expand for the first time since the banking crisis. Qatar built its investment in Canary Wharf in the aftermath of the crisis by pouring billions of pounds into a rescue fund which stopped the business collapsing because of debt. | The attempt to take full control of Canary Wharf comes at a time of rising rents for office buildings in London and as the Docklands site prepares to expand for the first time since the banking crisis. Qatar built its investment in Canary Wharf in the aftermath of the crisis by pouring billions of pounds into a rescue fund which stopped the business collapsing because of debt. |
| Qatar’s property-buying spree in London started in 2008 with a 20% stake in Camden market, followed by the takeover of Harrods for £1.5bn.The department store was bought from Mohamed Al-Fayed, who had owned it for 25 years. | Qatar’s property-buying spree in London started in 2008 with a 20% stake in Camden market, followed by the takeover of Harrods for £1.5bn.The department store was bought from Mohamed Al-Fayed, who had owned it for 25 years. |
| The stakes are held through a number of investment vehicles which also own stakes in Barclays bank and the mining company Glencore as well as a 95% stake in the Shard, another landmark also snapped up during the financial crisis when other investors took fright. The Olympic Village in Stratford, east London, and Chelsea Barracks, in the west of London, are also among its investments. | The stakes are held through a number of investment vehicles which also own stakes in Barclays bank and the mining company Glencore as well as a 95% stake in the Shard, another landmark also snapped up during the financial crisis when other investors took fright. The Olympic Village in Stratford, east London, and Chelsea Barracks, in the west of London, are also among its investments. |
| Winning control of the Canary Wharf estate, however, may not be straight forward because of Songbird’s complex ownership structure. While QIA is the biggest shareholder, there are other investors. Simon Glick, who helps run his diamond merchant family’s Glick Entities property empire, owns almost 26%. The China Investment Corporation, an investment arm of the Chinese state, owns 15.8% while the US investment bank Morgan Stanley owns 8.5%. The bank was one of the key tenants when the development was first opened in the early 1990s. | Winning control of the Canary Wharf estate, however, may not be straight forward because of Songbird’s complex ownership structure. While QIA is the biggest shareholder, there are other investors. Simon Glick, who helps run his diamond merchant family’s Glick Entities property empire, owns almost 26%. The China Investment Corporation, an investment arm of the Chinese state, owns 15.8% while the US investment bank Morgan Stanley owns 8.5%. The bank was one of the key tenants when the development was first opened in the early 1990s. |
| Songbird also owns stakes in the Walkie Talkie skyscraper in the City and in the Shell Centre on the South Bank – which it co-owns with another part of the Qatari investment empire. | Songbird also owns stakes in the Walkie Talkie skyscraper in the City and in the Shell Centre on the South Bank – which it co-owns with another part of the Qatari investment empire. |