Canary Wharf owner Songbird says its valuation of £2.82 bn exceeds QIA - Brookfield takeover price
28 Nov 2014
Songbird Estates Plc, majority owner of London's prestigious Canary Wharf Estate, today said that its property is now worth £2.82 billion ($4.4 billion), more than the £2.18 billion ($3.45 billion) takeover offer made last month by Qatar Investment Authority (QIA) and Brookfield Property Partners LP.
Updating information to shareholders, the board of Songbird said that it had asked its independent valuers to prepare an up-to-date valuation of the group's portfolio, who have said that improvement in the London property investment market and developments in the Canary Wharf Estate has helped Songbird's adjusted net asset value (NAV) to rise by 19.2 per cent since 30 June to 381 pence a share on 27 November.
This new valuation represents a 19.2-per cent increase compared to the reported adjusted NAV of 319 pence per share on 30 June 2014.
Songbird added that ''since 7 November 2014, the Board and its advisers have had discussions with QIA and Brookfield but the Board has not received a further proposal from them.''
In early November, Songbird Estates rejected a proposed 295-pence a share or $3.45-billion takeover bid from QIA and Brookfield Property saying that it significantly undervalued the company. (See: Canary Wharf majority owner Songbird rejects QIA - Brookfield's £2.18 bn bid)
Songbird currently has a market cap of £2.6 billion, but the recent revaluation of the company's assets valued it in excess of £4.4 billion.
Songbird, which is partially-listed on the stock market, is 28.6-per cent held by QIA, while New York investor Simon Glick, holds 25.07 per cent, China Investment Corporation 15.8 per cent, Morgan Stanley 8.53 per cent and US fund Third Avenue Management 3.2 per cent.
Songbird is the single-largest stakeholder in the Canary Wharf business district with a 69.3-per cent stake, while Brookfield is the second-largest with 22 per cent.
Songbird also holds stakes in the landmark "Walkie Talkie" skyscraper in the City and in the Shell Centre.
Songbird's prized asset is the Canary Wharf, which until 1961 was one of the world's busiest docks area serving huge industrial areas of east London and beyond. But with Britain losing its industrial preeminence, much of the docks had been lying idle till the Canary Wharf Group started developing the area in 1995.
The 97-acre area boasts tall skyscrapers and officially employs over 100,000 people in its 34 office buildings, over 280 shops, cafés, bars and restaurants. It has become a shopping destination, particularly with the opening of the Jubilee Place shopping centre in 2004.
The Canary Wharf financial district today rivals London's traditional financial centre, The Square Mile, and holds three of the tallest buildings in the UK - One Canada Square, known as the Canary Wharf Tower, 8 Canada Square and the Citigroup Centre.
Leading banking groups like HSBC, Credit Suisse and Barclays; media and service firms, including Thomson Reuters and Trinity Mirror have their office in Canary Wharf.
