The oil and gas rich state of Qatar is bidding to win control of Canary Wharf and add the biggest trophy yet to its collection of London property assets.
Qatar already owns a roster of high-profile buildings in the capital including the Harrods department store and Chelsea Barracks. It is also the preferred bidder to buy HSBC’s Canary Wharf headquarters for £1.1bn.
But now the Qatar Investment Authority - in tandem with Canada’s Brookfield - has stepped up its ambitions by opening talks over a potential offer for Songbird Estates, itself a 69% shareholder in Docklands landlord and developer Canary Wharf Group.
The approach comes as rents rise at Canary Wharf ahead of the imminent arrival of Crossrail and the area challenges the traditional supremacy of the City as the capital’s premier financial district.
The QIA is already a 28.6% shareholder in Songbird and will need to buy out other major stakeholders including US investor Simon Glick, whose Glick Entities owns 25.9%, the China Investment Corporation and Morgan Stanley. Brookfield is also a 22% shareholder in CWG.
The City sent shares in Songbird soaring 22%, putting a £2.33bn price tag on the company. The QIA and Brookfield have until December 4 to table a bid. Songbird urged its shareholders to take no action.
