Friday 20 June 2014 – Media Release
Sale and Acquisition of 10 Upper Bank Street, Canary Wharf, London and Related Transactions
Canary Wharf Group plc (“CWG”), has today completed the sale of 10 Upper Bank Street, Canary Wharf, London to a Separate Limited Partnership (the “SLP”) (the “Transaction”) for a consideration of £795 million (the “Sale Proceeds”).
The partners of the SLP that have acquired 10 Upper Bank Street are as follows:
(i) China Life Insurance Company Limited (“China Life”) through a wholly owned subsidiary which has acquired a 70.0% interest;
(ii) Qatar Holding LLC (“Qatar Holding”) through a wholly owned subsidiary which has acquired a 20.0% interest; and
(iii) CWG through 2 wholly owned subsidiaries which have acquired, in aggregate, a 10.0% interest.
The acquisition was funded partially through equity provided by the partners of SLP in proportion to their respective interests and partially through bank debt.
The 10 Upper Bank Street building is 1,028,000 square feet NIA (1,341,600 square feet GEA above ground), designed by Kohn Pedersen Fox and finished to an extremely high specification. It is one of only five buildings of over a million square feet in London, all of which are situated on the Canary Wharf Estate. It was also the first million square feet building to achieve the prestigious BREEAM “Excellent” rating. The entire office space in the building is leased to one of the world’s largest law firms, Clifford Chance LLP, with the retail unit let to HCA International Limited, the world’s largest private hospital group. The annual rent on the building is £44.35 million. The main lease on the building is due to expire in 2028.
CWG will be both the Asset Manager on behalf of the SLP and will also act as the General Partner of the SLP via its subsidiaries’ holdings.
This is an excellent opportunity for CWG to work with these two extremely important partners. CWG is very pleased to welcome China Life, one of the world’s top commercial insurance groups to Canary Wharf. It is an honour that this prestigious organisation, which is one of the Fortune 500 Global companies and one of the World’s top 500 Brands, has chosen to extend its international presence by coming to the Canary Wharf Estate.
CWG is also very pleased to extend its existing successful relationship with Qatar Holding. Qatar Holding, as a global investment house, has a vision of world-class investment and has been a long term investor in London and specifically of CWG for many years. CWG believes that this transaction represents a great example of the kind of partnership which illustrates the attraction of London as a world city, as well as helping to maximise international relationships.
Qatar Holding is a significant shareholder in Songbird Estates plc (“Songbird”), which is the parent company of CWG. As such, Qatar’s Holdings’ participation in the proposed Transaction constitutes a related party transaction under the AIM Rules for Companies.
The board of Songbird, other than those directors nominated by Qatar Holding, having consulted with J.P. Morgan Cazenove (in its capacity as Songbird’s nominated advisor pursuant to the AIM Rules for Companies), consider the terms of Qatar Holding’s participation in the Transaction to be fair and reasonable insofar as the shareholders of Songbird are concerned.
The Sale Proceeds will be used by CWG, amongst other things, to partially redeem the Class A1 notes issued under a securitisation transaction by Canary Wharf Finance II plc, a wholly owned subsidiary of CWG (the “Issuer”).
Notes to editors:
About Canary Wharf Group plc:
Canary Wharf Group plc 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 Canary Wharf Group has regenerated derelict wharves into one of the world’s premier business and shopping districts, constructing over 16 million square feet of office space; more than any other company in London. These buildings are occupied by over 100,000 people.
The Group’s other partnership developments away from the Canary Wharf Estate include the ongoing development and construction of 20 Fenchurch Street (the Walkie Talkie) in the City of London, Drapers Gardens and the successful completion of Pan Peninsula. The Group is also involved in a joint venture with Qatari Diar for the redevelopment of the Shell Centre on London’s South Bank.
Canary Wharf Group’s 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. Canary Wharf Group has also developed and successfully let over 280 shops, bars, cafes and restaurants including many of Britain’s leading brands.
Should you have any queries concerning the information contained in this notice please contact:
Songbird Estates plc
Tel: + 44 (0) 20 7477 1000
J.P. Morgan Cazenove (Nominated Adviser and Corporate Broker to Songbird)
Tel: +44 (0)20 7742 4000