Monday 22 July 2013 – Media Release
Acquisition of 15 Westferry Circus, Canary Wharf
Canary Wharf Group plc (“CWG”) has today completed the acquisition from Gort Limited (in administration) and Hibernia (2005) Limited (in administration), of 15 Westferry Circus at Canary Wharf. As consideration for the asset, CWG has paid approximately £128m. Additionally CWG took a novation of the existing senior swap which has an estimated value of £11.4m. This swap matures in April 2016. The purchase price is being fully funded by way of a new loan provided by Metlife which has a maturity date co-terminus with the fixed rate swap. The weighted average cost of debt will be approximately 6.0%.
The equity provided by CWG for the transaction was limited to the purchase costs (including SDLT) of approximately £6m.
15 Westferry Circus was designed by SOM/Terry Farrell & Partners and completed by CWG in 2001. The property is held under a 999 year lease with the freehold retained by CWG. The property has the benefit of a lease to Morgan Stanley on the entire demise for a term of 35 years commencing on 31 August 2001 and expiring on 31 August 2036, subject to a first break option on 31 August 2026. Current income with the property is approximately £8.22m per annum which exceeds debt service. The next rent review is due in August 2016. The property is currently occupied by Tubelines which has previously entered into a sub lease arrangement with Morgan Stanley.
Notes to editors:
CWG was advised by GM Real Estate and Macfarlanes.
About Canary Wharf Group plc:
CWG is an integrated property development, investment and management group of companies. It is focussed on the design, construction, leasing and management of grade A office space and high quality retail and leisure facilities in central London. Over the past 20 years CWG has regenerated derelict wharves into one of the world’s premier business and shopping districts, constructing over 15 m sq ft of office space; more than any other company in London. These buildings are occupied by over 100,000 people. CWG tenants, clients and occupiers include some of the world’s leading business organisations from the media, legal, accounting, financial services, IT, energy and transport sectors. CWG has also developed and successfully let over 240 shops, bars, cafes and restaurants including many of Britain’s leading brands. The Group has also been involved with four projects away from the Canary Wharf Estate. Following the successful completion of Pan Peninsula, Drapers Gardens and ongoing construction of 20 Fenchurch Street (Walkie Talkie) in the City of London, which is in a joint venture with Land Securities, the Group is now in a joint venture with Qatari Diar for the redevelopment of the Shell Centre on London’s South Bank.
For further information please contact:
Songbird Estates plc
Tel: +44 (0)20 7418 2312
Simon Sporborg/Elizabeth Adams
Tel: 020 7404 5959