Qatar Investment Authority and Brookfield Property Partners LP acquired 100 percent of London’s Canary Wharf Group after buying out the remaining shareholders. Brookfield owned 22 percent of CWG before the deal.
The venture had already agreed to acquire Songbird Estates Plc, which owned 69 percent of CWG, in January in a deal that valued Songbird at about 2.6 billion pounds ($3.9 billion). Songbird shares are expected to stop trading on London’s AIM market on April 23, according to a statement on Monday.
Sovereign wealth funds such as Qatar Investment Authority are seeking property deals of $1 billion or more as yields from bonds shrink, making returns from property more attractive. Canary Wharf in east London is the city’s second-largest financial district and the owners plan to build more housing after prices surged in the U.K. capital.
“Canary Wharf remains one of the most treasured property estates in the world,” Brookfield Property Group Chief Executive Officer Ric Clark said in the statement. “We look forward to working with QIA and the Canary Wharf Group management team to advance the substantial development pipeline and to realize the full potential of the site.”