Canary Wharf Group Plc (CWG), the developer and manager of east London’s business district, agreed to pay 90.4 million pounds ($139 million) to acquire outright the leasehold for a development site adjacent to its estate.
The company bought Waterways’ 50 percent stake in the leasehold to the 16.8-acre (6.8-hectare) Wood Wharf site for 52.4 million pounds, according to a statement. It also purchased Ballymore Properties Ltd.’s 25 percent stake for 38 million pounds.
Canary Wharf already owned 25 percent of the site, for which there is planning consent to build 4.8 million square feet (445,935 square meters) of apartments, shops, offices and a hotel. It will own the site under a renegotiated 250-year agreement with British Waterways, a state-owned company and to which ownership will revert when the leasehold expires.
“Wood Wharf’s development will mark an important evolution in the development of the Canary Wharf business, retail and residential district,” said George Iacobescu, Canary Wharf’s chairman and chief executive officer.
Canary Wharf is 69 percent owned by Songbird Estates Plc (SBD), which is controlled by a group of investors including Qatar Holding LLC, New York-based investor Simon Glick, funds managed by Morgan Stanley, and China Investment Corp.
Canary Wharf developed and runs the 97-acre estate of the same name in London’s former docklands. It has also expanded to develop office buildings in the City of London district and is steering the redevelopment of the Shell Centre near Waterloo railroad station.
To contact the reporter on this story: Simon Packard in London at email@example.com.