Friday 1 March 2013 – Media Release
Canary Wharf Group plc acquires long leasehold interests in 7 Westferry Circus
Canary Wharf Group plc (“Canary Wharf Group”) has completed the acquisition of the long leasehold interests in 7 Westferry Circus on the Canary Wharf Estate, E14, from Teachers REA, LLC, and Teachers REA II, LLC. The acquisition price is £46.6m.
7 Westferry Circus is a 179,800 sq ft eight storey building on the Western perimeter of the Canary Wharf Estate. It provides approximately 164,300 sq ft of office space and ancillary space, and approximately 15,500 sq ft of retail space. The office space is let in its entirety to the European Medicines Agency (“EMA”) until December 2014. The current gross annual rent on the property is £6.9m reflecting an initial yield of 14.0%.The EMA will vacate the property prior to its lease expiry to take up its new occupation in 25 Churchill Place.
The transaction gives Canary Wharf Group more control of the estate and enhances the Group’s strategic flexibility. Additionally, given that the traditional design and specification of 7 Westferry Circus differs from the larger developments on the Canary Wharf Estate (e.g. 25/30 Churchill Place), reclaiming ownership of this building improves the Group’s future ability to attract different occupiers and diversify the tenant base in line with both market demand and our stated objectives.
Sir George Iacobescu CBE, Chairman and Chief Executive Officer of Canary Wharf Group, said:
“The transaction will give Canary Wharf Group sound initial income and the flexibility to explore more opportunities in the medium to long term as the estate matures. It reflects the Group’s strategic commitment to achieving a more diverse portfolio, both in terms of its asset and tenant base, and its confidence in the future of London as a pre-eminent global centre.”
For further information please contact:
Canary Wharf Group plc
Tel: 020 7418 2312
Elizabeth Adams / Lewis Clark
Tel: 020 7404 5959
GM Real Estate advised Canary Wharf Group and JLL advised Teachers on this transaction.
Canary Wharf Group plc is an integrated property development, investment and management group of companies.
Canary Wharf has a working population of 100,000 people in a diverse range of sectors for some of the world’s leading companies. It has paved the way for the regeneration of London’s Docklands and one in five Canary Wharf workers now lives in a local East London borough. It has helped London and the City consolidate its position at the centre of the business world.
The Group has plans in place to continue to develop Canary Wharf in the coming years in parallel with other central London developments including the Shell Centre on the South Bank (in a joint venture with Qatari Diar) and 20 Fenchurch Street in the City of London (in a joint venture with Land Securities). The Group has completed the construction phase of the Canary Wharf Crossrail station ahead of schedule and on budget. www.canarywharf.com/