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Mikhail Liebenstein

Canary Wharf In The Coal Mine

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http://www.guardian.co.uk/business/2009/au...arf-china-qatar

This just proves the size of the hole in commercial property. It also says to me things have further to fall - with jobs still being lost, who is going to need all this office space?

Qatar and China have come to the rescue of the owner of Canary Wharf, which came close to collapsing under the weight of debts of £880m.

Songbird Estates, which plunged into a £1.8bn loss last year amid the commercial property slump, today agreed to raise equity financing to safeguard its future. Analysts say the fundraising will be the biggest ever seen in the property sector.

The property company, which owns 60% of the Canary Wharf development, including the main tower, has received commitments from its existing shareholders Qatar Holding, Morgan Stanley and GF Investments. It has also attracted a new investor, China's sovereign wealth fund, the China Investment Corporation, which is making its first big property investment in the UK.

The four shareholders have agreed to subscribe to and underwrite a share issue to enable Songbird to repay its entire debt to its lender, Citigroup, also a tenant in Canary Wharf, at a 5% discount. This will lower the total repayment to £836m.

David Pritchard, Songbird's chairman, said that without the refinancing the Aim-listed company would have been unable to pay back its loan: "Very likely we would have gone down the path of liquidation. This deal puts us on to a sound financial footing and demonstrates a very strong vote of confidence in Canary Wharf."

Qatar and the China Investment Corporation will become the two biggest shareholders in Songbird, having agreed to take up £275m of preference shares as well as a "significant" number of ordinary shares. Minority shareholders will also be offered ordinary shares, at 1p.

British Land holds 18% of Songbird but has decided not to take part in the share issue as it tackles its own problems, and will see its stake "materially" diluted.

Analysts at Cazenove said: "At over £800m this will be the largest equity raising to date in the quoted property sector.

"The existing investors are putting up a significant amount of money, as is China Investment Corporation, at what is likely to be close to the bottom of this particular central London office cycle."

Full details will be released with half-year results on 24 September. The shares closed up 0.25p at 34p.

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Damn foreigners. Would have loved to seen Songbird bite the dust.

Sitting in Cabot Square at the moment. Very quite, so I guess the shops are not doing well either :unsure:

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Damn foreigners. Would have loved to seen Songbird bite the dust.

Sitting in Cabot Square at the moment. Very quite, so I guess the shops are not doing well either :unsure:

Are you in an office or is it a day out?

The latter seems hard to believe.

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Are you in an office or is it a day out?

The latter seems hard to believe.

Was meeting a few people for coffee, in the "heart of the beast."

Also construction seems to be proceeding on the huge hole they dug on the West side of the Isle of Dogs (near canary wharf pier). It went quiet for a while after they had put the waterproof walling in, to prevent the Thames flooding it.

So it looks as though this development is proceeding:

_38905311_canarywharf_203.jpg

http://news.bbc.co.uk/1/hi/business/2816077.stm

Also Boris might over rule Tower Hamlets on this development..

BROOKM72428082009.P02.jpg

http://www.eastlondonadvertiser.co.uk/cont...%2018:23:23:210

And work is continuing on the Crossrail station.

Other recently completed buildings are The State Street and Bear Stearns buildings in Churchill Place, and Fitch Rating North Colonnade. Very handy for the FSA to pop in for coffee?

Edited by HostPaul TAFKA Rover2000

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canary wharf: the biggest bankruptcy till then in the GC1.

GC2: the same..

GC3: the same.

banksters....

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Was meeting a few people for coffee, in the "heart of the beast."

BROOKM72428082009.P02.jpg

What a profoundly ugly building. Looks as if its meant to look like the Thames flood barrier supports.

No doubt the design is to create lots of penthouses which can look down on other occupants of the tower.

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What a profoundly ugly building. Looks as if its meant to look like the Thames flood barrier supports.

No doubt the design is to create lots of penthouses which can look down on other occupants of the tower.

It would look out over the City and central London, so ideal as swaggering, megalomaniac banksta pads.

Since the smoking ban was imposed, there is hardly an external space at CW where you can avoid a fat sleezy banksta with pointy shoe's blowing smoke in your face, whilst operating a Blackberry. :lol:

Edited by HostPaul TAFKA Rover2000

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What a profoundly ugly building. Looks as if its meant to look like the Thames flood barrier supports.

No doubt the design is to create lots of penthouses which can look down on other occupants of the tower.

It looks like something altogether different and a little bit rude.

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It looks like something altogether different and a little bit rude.

Its a grant Bovey erection...distressed property, yet to materialise and d1ck shaped, all in one massive bankruptcy.

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Damn foreigners. Would have loved to seen Songbird bite the dust.

Sitting in Cabot Square at the moment. Very quite, so I guess the shops are not doing well either :unsure:

If you mean very quiet so it should be, it is a business district for christ sake! Who would want to visit Canary Wharf to shop? The fact that it has spawned an underground identikit high street was the bubble at it's worst.

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If you mean very quiet so it should be, it is a business district for christ sake! Who would want to visit Canary Wharf to shop? The fact that it has spawned an underground identikit high street was the bubble at it's worst.

I hear the traffic can get a bit hairypglondonCANARYWHARFtraffic.jpg

post-10213-1251644713_thumb.jpg

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If you mean very quiet so it should be, it is a business district for christ sake! Who would want to visit Canary Wharf to shop? The fact that it has spawned an underground identikit high street was the bubble at it's worst.

I do. Lots of good shops I use all the time. Not saying they are profitable or a good thing, but I go there most days. Even at weekends.

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If you mean very quiet so it should be, it is a business district for christ sake! Who would want to visit Canary Wharf to shop? The fact that it has spawned an underground identikit high street was the bubble at it's worst.

Yes I did mean quiet. Easy to get to, by car, bus, boat, tube, and foot. Also 3 hours free parking! Also less screaming children than the average shopping centre, generally good Wifi and plenty of coffee shops. I think the fact that the place is a business district and empties out at weekends must be an issue for CWG, but they try and drum up interest from time to time. You get quite a few tourists there. Its a bit of an oasis of the East at weekends.

Edited by HostPaul TAFKA Rover2000

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Its sort of sad for the west.. these former basically tribal colonies now own a growing percentage of everything in our countries. Everytime I open the business papers either the Chinese, Qatar or UAE investment companies are buying up another big piece of our economy.

Imo it is because we are all democracies. And democracies only operate on the very short run, like until the next election. In the short run you can always live better by selling your capital and going into debt.

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Imo it is because we are all democracies. And democracies only operate on the very short run, like until the next election. In the short run you can always live better by selling your capital and going into debt.

Possibly. But I wouldn't describe Canary Wharf as essential infrastructure. Its prime real estate admittedly as a number of international banks are head quartered there (for the moment).

Can't help but feel the smart money is getting out. The time to get into Docklands was when it was a derelict wasteland. It could become a wasteland again. The money's been made. Even HSBC sold off their tower.

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Guest sillybear2
Damn foreigners. Would have loved to seen Songbird bite the dust.

Gordon Gekko's Phallus was designed by the Canadians anyway, it seems to be a square in some surreal real world global monopoly board.

The Chinese need to skip two and jump to Junk Bond street.

What a profoundly ugly building. Looks as if its meant to look like the Thames flood barrier supports.

Of course, the architect was inspired by its intended inhabitants so designed a giant c0ck.

Edited by sillybear2

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